Improper billing under defense equipment contracts with the Ministry of Defense
First written in FY2019-Q3. 1 of 3 entries say "Materialised", first in FY2019-Q3. Latest entry: FY2020-Q3.
0 other companies' latest entry also says "Mitigated".
- FY2020-Q3MitigatedAnnual report
「As announced on 29 January 2019, following the discovery of improper billing based on the inappropriate recording of labor hours for defense equipment (the improper labor-hour recording), we voluntarily reported the matter to the Ministry of Defense on 28 January 2019. On 24 January 2020, payment of refunds totaling ¥8,033 million into the national treasury was completed.」
Regarding improper billing for defense equipment, the Company reported that payment of refunds totaling ¥8,033 million into the national treasury had been completed, indicating progress in the refund process. - FY2019WorsenedAnnual report
「Following the discovery that we had submitted bills based on improperly recorded labor hours in connection with contracts with the Ministry of Defense for defense equipment, we recognized ¥7,618 million in expected refunds and other related amounts as other expenses. The Ministry of Defense began a special investigation on 14 March 2019, and we are cooperating fully with the investigation.」
The matter progressed from reporting the improper billing to recognizing a provision and expense of ¥7,618 million for refunds and other amounts, and to the launch of a special investigation by the Ministry of Defense, making the financial impact more concrete. - FY2019-Q3MaterialisedAnnual report
「On 28 January 2019, we reported to the Ministry of Defense that, in the past, we had improperly billed the Ministry under defense equipment contracts between the Company and the Ministry by reallocating work hours.」
The Company reported to the Ministry of Defense improper billing under defense equipment contracts resulting from the reallocation of work hours. The amount of overbilling, penalties and late-payment interest could not be determined because the calculation methods and applicable periods were unclear, and no provision had been recognized as of that time.