A former financial executive of Japan Display Inc. has claimed that the ailing company was engaged in accounting fraud in the past.
In an email sent to JDI on Tuesday, the executive, who was fired in December last year for allegedly embezzling about ¥578 million from the maker of liquid crystal display panels, claimed the fraud was directed by top managers at the time, the company said Wednesday.
JDI has started reviewing its past accounting records in cooperation with an auditing firm. The company also plans to ask outside specialists to carry out an investigation.
JDI has filed a criminal complaint against the former senior official in relation to the embezzlement case.
While it is still not known whether the claim by the former executive is accurate, JDI may be forced to look into its records for at least the five years from 2014, during which time the ex-official allegedly embezzled the company’s money.
The former executive said that the alleged accounting fraud case is unrelated to the embezzlement issue, according to JDI.
“We have been closely checking on our financial statements since we dismissed the executive,” JDI said. “While we believe that appropriate accounting procedures were taken, we disclosed the fact that we received the notification (from the former executive).”
The company is trying to rehabilitate itself while receiving financial support from a government-backed investment fund.