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Last Updated: Oct 12, 2008 - 7:34:53 AM |
Itochu said it also suspects similar transactions took place involving
another firm that cost it more than ¥40 billion in payments.
The employee, who was chief of the sales division for construction
machinery and for the overseas project department, was fired as of
Wednesday, it said.
The company said it started a business in fiscal 1999, in which it
purchased heavy machinery from the Mongolian supplier and sold it to a
local natural resources company.
In the beginning, the transactions actually took place. But in fiscal
2000, when the natural resources firm got low on cash, the employee
started making his dubious deals.
The scheme went on for nearly eight years until it was discovered in
late May, the trading house said.
Itochu said it believes that the money paid to the machinery supplier
was eventually handed to the natural resources company as operating
funds.
The employee carried out the transactions in an effort to expand
business with the natural resources firm and did not receive any
kickbacks, Itochu quoted the employee as saying.
Some ¥10.3 billion from the transactions remains uncollected, of which
¥5.1 billion is overdue, Itochu said.
The trading house does not plan to revise its earnings projection for
the full fiscal year through March 31, it said.
Source:Ocnus.net 2008
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