Mitsubishi Electric to punish ten current and former executives for fraud

Mitsubishi Electric Corporation to punish ten former and current executives, reports The Mainichi. The investigation revealed that top managers are guilty of falsifying documentation on the results of inspections of air conditioners and brake compressors for trains that it produces for more than 35 years. A year earlier, 12 other representatives of the leadership had already been punished for the same violations.

The document falsification scandal erupted in the summer of 2021. Then it turned out that the data on inspections of equipment for trains had been falsified since 1985. During this time, the company has supplied 84,600 air conditioners to 80 railway companies and 1,500 compressors to 20 companies. At the same time, Mitsubishi Electric assures that the use of equipment, the documentation of which was falsified, does not pose a threat to consumers: but the fact that some managers allowed falsification of documents is important to the company. Because of the scandal, they were forced to file resign Mitsubishi Electric CEO Takeshi Sugiyama and chairman Masaki Sakuyama, who claimed responsibility for “three decades of systematic deception” by the company.

An expert commission set up to investigate said that a total of 197 cases of violations were identified at 17 of the company’s 22 production facilities in Japan. In December last year, as part of the preliminary results of the investigation, disciplinary sanctions were applied against 12 current and former top managers. A decision has now been made regarding another ten people. Three current top managers will have their salaries reduced by 20-30% for three months. Seven former top managers will have to return to the company an amount equal to 20-30% of their monthly salary within three months before their dismissal.

Alena Miklashevskaya