Kobe Steel admits data fraud went on nearly five decades CEO to quit
Kobe Steel
TOKYO (Reuters) -  Kobe Steel Ltd  admitted on Tuesday  its  data fraud has been going on nearly five decades and also revealed new cases of cheating  highlighting the challenges facing the 112-year-old company mired in compliance failures and malfeasance.
Kobe Steel  which supplies steel parts to manufacturers of cars  planes and trains around the world  admitted last year to supplying products with falsified specifications to about 500 customers  throwing global supply chains into turmoil.
 Kobe Steel  also announced the resignation of Executive Vice President Akira Kaneko and temporary pay cuts for up to 80 percent of all internal directors and executive officers.
 Kobe Steel  President and CEO Hiroya Kawasaki attends a news conference in Tokyo  Japan March 6  2018. REUTERS/Toru Hanai
 PROBLEMS LONG ENTRENCHED
Kobe Steel  said the data cheating started at least as early as the 1970s  based on testimony from multiple sources interviewed by the external investigation team.
 The company  mapped out various preventive measures  including setting up an external committee to oversee quality issues  but those familiar with  the company  say  its  problems are entrenched.
 Kobe Steel  has had a series of scandals in the last dozen years  including taking part in bid-rigging for a bridge project in 2005  failing to report income to tax authorities in 2008  2011 and 2013  and falsifying emissions data in 2006. Illegal political funding to candidates in local elections in 2009 also prompted the resignations of the then CEO and chairman.
The data fraud scandal  though  so far appears to have left  Kobe Steelâs  finances unscathed. In February   the company  reinstated a forecast for  its  first annual profit in three years for the year ending March 31.
But  the company  is also undergoing a U.S. Justice Department probe  meaning  it  still faces legal and financial risk. A Japanese government-sanctioned seal of quality has been revoked on some of its product as well.
âThere is a pending risk for  Kobe Steel  as customers at home or abroad may cancel their contracts and take legal actions  and the U.S. Justice Department may seek a penalty â said Makiko Yoshimura  director at S&P Global Rating Japan.
TOKYO (Reuters) -   [TGT] admitted on Tuesday   [TGT]   data fraud has been going on nearly five decades and also revealed new cases of cheating  highlighting the challenges facing the 112-year-old company mired in compliance failures and malfeasance.
Kobe Steel  which supplies steel parts to manufacturers of cars  planes and trains around the world  admitted last year to supplying products with falsified specifications to about 500 customers  throwing global supply chains into turmoil.
  [TGT] also announced the resignation of Executive Vice President Akira Kaneko and temporary pay cuts for up to 80 percent of all internal directors and executive officers.
 Kobe Steel  President and CEO Hiroya Kawasaki attends a news conference in Tokyo  Japan March 6  2018. REUTERS/Toru Hanai
 PROBLEMS LONG ENTRENCHED
 [TGT] said the data cheating started at least as early as the 1970s  based on testimony from multiple sources interviewed by the external investigation team.
 The company  mapped out various preventive measures  including setting up an external committee to oversee quality issues  but those familiar with  the company  say  its  problems are entrenched.
  [TGT] has had a series of scandals in the last dozen years  including taking part in bid-rigging for a bridge project in 2005  failing to report income to tax authorities in 2008  2011 and 2013  and falsifying emissions data in 2006. Illegal political funding to candidates in local elections in 2009 also prompted the resignations of the then CEO and chairman.
The data fraud scandal  though  so far appears to have left  Kobe Steelâs  finances unscathed. In February   the company  reinstated a forecast for   [TGT]   first annual profit in three years for the year ending March 31.
But  the company  is also undergoing a U.S. Justice Department probe  meaning  it  still faces legal and financial risk. A Japanese government-sanctioned seal of quality has been revoked on some of its product as well.
âThere is a pending risk for  [TGT] as customers at home or abroad may cancel their contracts and take legal actions  and the U.S. Justice Department may seek a penalty â said Makiko Yoshimura  director at S&P Global Rating Japan.