Japan's financial watchdog said Wednesday that it had slapped a $2.4 million penalty on disgraced camera and medical equipment maker Olympus over a huge loss cover-up scandal.
The scheme saw Olympus executives hide about $1.7 billion in losses dating back to the 1990s through acquisitions and outsized consultant fees until its former British chief executive blew the whistle last year.
The 191.82 million yen ($2.4 million) fine ordered by Japan's Financial Services Agency comes after the scandal sparked lawsuits and dented Japan's corporate governance image.
Olympus said Wednesday it would pay the fine, and try to rebuild its tattered reputation.
"We take the situation seriously and are making efforts to prevent a recurrence in the future and regain trust," the company said in a statement.
The firm initially denied the cover-up allegations but eventually admitted wrongdoing, with Olympus and three former senior executives -- including ex-president Tsuyoshi Kikukawa -- charged over their role in the scandal.
The company has since agreed to a reported 10.0 million pound ($15.6 million) payout to former chief Michael Woodford to settle a wrongful dismissal lawsuit.
Woodford was sacked late last year after he brought his concerns about the firm's accounting to the old board of directors.
Separately, Japanese authorities earlier this month ordered Olympus to pay about five billion yen in back taxes and penalties related to the loss cover-up scheme, according to local media.
In June, the company's new board pledged to revamp its corporate governance and internal auditing measures to prevent a recurrence of the accounting fraud.
Olympus has announced a major overhaul that includes cutting about seven percent of its workforce, while its new chief has publicly said he is seeking a capital injection to shore up the company's finances.
However executives at a shareholders meeting last month declined to confirm reports that Sony would inject more than $620 million into the firm, and said at the time it was negotiating with more than one firm.
The reports said Sony, which is struggling after posting a record loss in its latest fiscal year, may team up with Olympus on camera technology and its medical equipment business.
Best known as a camera maker, Olympus is also a leader in the health care field -- including a near two-thirds share of the global endoscope market -- which Sony has said it would expand as part of its own corporate overhaul.
Olympus has been searching for a potential investor as its balance sheet deteriorated since the accounting scandal, reporting a net loss of 48.99 billion yen in the fiscal year to March.
Source: AFP Asian Edition
