FM Tokyo Unauthorized settlement of accounts August 21 at 19:58 due to excess debt due to a subsidiary deficit
Tokyo radio station “FM Tokyo” announced that it had illegally removed the subsidiary from the scope of consolidation in order to prevent the deficit of the subsidiary from affecting the business results.
This was revealed on July 21 at a press conference held by FM Tokyo.
According to it, in order to prevent the deficit of the subsidiary from affecting the performance of FM Tokyo in the three-year settlement until March, the sale of a part of the subsidiary's stock, etc. It was removed from the scope of consolidation.
FM Tokyo had a whistleblowing at its office in April and established a third-party committee for investigation.
According to the report of the third-party committee, FM Tokyo invested heavily in a subsidiary engaged in a new radio business that digitally broadcasts, but actively promoted the business, but a large amount of deficit emerged and the debt exceeded. It is that.
For this reason, in order to avoid the situation where the responsibility of the management at that time was questioned, the company was carrying out fraudulent processing that excluded subsidiaries from consolidation.
At FM Tokyo, all directors involved in fraudulent accounting, including the president at that time, have already retired.
Mr. Osamu Kurosaka, President of FM Tokyo, apologized at the conference, “I apologize for causing something that should not be a highly public broadcaster”.