Japanese electric motor manufacturer Nidec Corporation has been found to have committed accounting fraud totaling 166.2 billion yen ($1.1 billion), according to a third-party committee report released on the 10th.
The report, which investigated accounting irregularities at the company, identified fraudulent accounting practices amounting to 166.2 billion yen as of 2023, the Nikkei reported.
Initial allegations that founder and honorary chairman Shigenobu Nagamori directed and led the fraudulent accounting were found to be untrue. However, the investigation determined that Nagamori effectively turned a blind eye to the practices.
Following the report's release, three executives including Hiroshi Kobe, one of Nidec's founders and chairman, resigned along with the head of the machinery business division. The head of the home appliances and automotive business division was also suspended from duties.