TOKYO – The former president of the Mitsubishi Materials, Hiroaki Murata, who manipulated technical data for some products, decided to continue shipping the affected products to avoid paying the compensation and bankruptcy, the parent company said on Thursday.
In February, the former Mitsubishi Cable Industries president was informed about the data falsification that began in the 1990s, but he allowed the shipments to continue for fear that the company might not be able to cope with orders replacement had the report taken place, and it could lead to compensation demands and bankruptcy, according to a report.
The provisional report of the interim investigation into Mitsubishi Materials misconduct was presented on Thursday by the conglomerate’s president, Akira Takeuchi, who apologized to his clients and the affected parties.
Takeuchi said during a press conference in Tokyo that the final report on data falsification would be released in February and assured they would introduce external consultants and improve controls at its plants and subsidiaries to prevent a recurrence of issues related to quality-control.
Besides the Mitsubishi Cable Industries, which skipped required inspections on some of its sealing products mainly used to prevent oil, water or air leaks, and also falsified technical data for magnetic wire used in electrical products, two more Mitsubishi Materials subsidiaries committed irregularities.
Mitsubishi Shindoh rigged data for brass products, various alloys and copper starting in 2001, prioritizing the strengthening of a new car parts business instead of adhering to safety norms, according to the provisional interim report.
Three directors of the subsidiaries are expected to step down on Dec. 31, while its president and vice president will return parts of their salary.
The data falsification in Mitsubishi Materials is part of a series of scandals uncovered, including at Kobe Steel, in recent months that has put the damage on the Japanese companies’ reputation.