Nidek certifies 844 cases of quality fraud; external investigation committee releases report

On the 4th, major motor company Nidek (formerly Nidec) released an investigation report by outside lawyers regarding the issue of quality fraud in its motor products. The report identified 844 cases of fraud in a total of 12 business divisions and subsidiaries. He said the cause was that management strongly demanded short-term performance targets, and pointed out the similarities with accounting fraud. The investigation committee is holding a press conference from 3 p.m.

Approximately 95% of the fraud involved changes to materials or processes without customer approval, and there was also falsification or fabrication of test results. The report also included 60 ``important quality incidents'' involving executives or site managers, or where there was a possibility of a recall.

At a press conference, attorney Toshihiko Itami, chairman of the investigation committee, pointed out, ``Following the issue of accounting fraud, it is extremely serious that misconduct of this scale has been revealed in the area of ​​quality assurance, which is at the core of the manufacturing industry.'' On the other hand, he added, ``I have heard from the company (Nidek) that they have not identified any products that have safety issues or are scheduled to be recalled.''

The investigative committee was established in May after an internal investigation into accounting fraud that was discovered last year revealed about 1,000 cases of suspected quality fraud. The number of cases of fraud identified by the investigation committee decreased as a result of excluding cases that were approved by the customer or that did not violate laws and regulations, and combining cases of fraud that occurred at the same location into one case.

Regarding the cause of fraud, the short term...