Shaw
Capital Management Factoring News: Japan
Bans Mitsubishi from Contract Bids - Mitsubishi Corp. subsidiaries have
been given suspension by the Japanese government in the wake of overcharging
issues.
The contract bidding suspension came after the Ministry of
Defense became alert that Mitsubishi has overcharged various government
agencies in their cost of expenses.
Further details about the incident were not publicized and
the company is still assessing the potential impact this ban will have on their
company and their affiliates.
Mitsubishi Electric Corp has announced that their business
subsidiaries and an affiliate company have all got a notice this week from the
Ministry of Defense of Japan. The notice states their suspension from
participating in government biddings.
After it was revealed on January that Mitsubishi has
overcharged the ministry along with the JAXA (Japan Aerospace Exploration
Agency and the Cabinet Satellite Intelligence Center, subsidiaries of Taiyo
Musen, an equity affiliate and Mitsubishi Electric (which includes Mitsubishi
Space Software, TOKKI Systems Corporation and Mitsubishi Precision) the
involved firms have informed the MOD about the overcharges only today.
Through internal investigation, it was discovered that they
have also charged more for the ministry by altering records of work across
various orders.
The impact of this incident on Mitsubishi’s consolidated
market performance still remains uncertain but the firm plans to announce what
the public should be alert of as soon as the condition is understood better.
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