Olympus report urges legal action

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Olympus report urges legal action

Olympus report urges legal action
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A damning report has been released by the independent panel of experts looking into the accounting scandal at Olympus.

It urges legal action against the company executives responsible for a cover-up and says other board members who knew about it should be replaced.

The experts said they did not find evidence of any link with Japanese organised crime in the complex 1.25 billion euro scandal.

“The core part of management was rotten and the parts around it were also contaminated by the rot,” the panel said in its report, which was commissioned by the company and ran to more than 200 pages.

“In the worst possible sense, the situation was that of the tribal culture of the Japanese salaryman,” it added, referring to a culture of absolute corporate loyalty.

The panel also criticised the external auditors who signed off on the books of the once venerable company.

But the report failed to satisfy Olympus’ ex-CEO Michael Woodford, who blew the whistle on the scandal after being fired.

Woodford, who is campaigning to take control of the board by regaining his old post at the head of a new team of directors, said the panel’s report contained nothing new.

He again called for board members to resign immediately and an extraordinary shareholders meeting to be held.

The report “brings home the point that the people sitting running the company at the moment did nothing, which I again find so mind boggling that they are still there,” Woodford said.

“I will be coming back to Japan soon in relation to meeting with shareholders and potential new investors,” he added.