Friday, May 23

Corruption is hidden under national security rug

Its curious how people start hiding behind national security when corruption, monopolistic policies, bad governance, etc. etc. is in play. We saw that when we had the situation with BAe and UK and now we are seeing the situation with J Power in Japan.

See here.

The move came as the auditors of J-Power launched an internal investigation into the utility’s business practices, following a request by TCI, its largest shareholder with a 9.9 per cent stake.

yes? the auditors would be the protection of Mr. and Mrs. Yamamoto who have invested their life savings in this company, no?

No. Why?

TCI, which wants to improve returns from its 9.9 per cent stake in electric power wholesaler J-Power, is asking the company’s statutory auditors to investigate whether directors have breached their duty by failing to stop practices that have led to profit declines. But their relationship with J-Power offers small hope the auditors will uncover anything improper. Of the five auditors, one is a former J-Power director with 30 years of company service behind him. Two others hail from the Ministry of Finance – one of the government organs charged with determining whether TCI should be allowed to increase its stake in J-Power. The practice, called “descending from heaven”, raises questions as to whether some of the auditors may be constrained from acting independently of management.

Welcome to Japanese management..

No comments: