Japan prosecutors charge Kobe Steel in fake data scandal

Kobe Steel has said a zealous pursuit of profits, unrealistic targets and an insular corporate culture were behind the scandal. (AFP)
Updated 19 July 2018
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Japan prosecutors charge Kobe Steel in fake data scandal

TOKYO: Japanese prosecutors charged major steelmaker Kobe Steel Thursday with violating laws overseeing competition in a massive faking of product data.
Kobe Steel, which has repeatedly apologized for the practice, said in a statement that it took the allegations seriously and was working to prevent a recurrence.
“We once again deeply apologize,” it said, without elaborating on specific charges. “The entire Kobe Steel Group is working together sincerely.”
The systematic misconduct spanned years, affecting products sent to more than 680 companies, including aluminum castings and copper tubes for autos, aircraft, appliances and trains.
The scandal, which surfaced last year, has set off a class-action lawsuit and an investigation in the US.
Kobe Steel has said a zealous pursuit of profits, unrealistic targets and an insular corporate culture were behind the scandal.
There have been no reports of accidents or injuries related to the fake data.
Charges were not filed against any individuals, though the company has said managers who knew of the wrongdoing intentionally looked the other way.
The systematic faking of data took place at various plants throughout Japan, according to the prosecutors and the company. Kobe Steel launched an internal investigation and released the findings earlier this year.
The scandal was a major embarrassment for a famous brand in a nation built on quality “monozukuri,” a phrase likening manufacturing to a craft or a science.
Kobe Steel has promised each employee will return to “the roots of monozukuri” to win back trust.
If found guilty in a court, the company could be fined. It is not clear how much.
The chief executive at Kobe Steel and several other executives resigned over the scandal. Some managers took pay cuts.
Quality control woes have been rife at other top Japanese brands, including Nissan Motor Co. Nissan has acknowledged that illegal vehicle inspections occurred for years at its plants in Japan.


Moody’s raises GDP growth forecasts for Saudi Arabian economy

Updated 12 min 2 sec ago
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Moody’s raises GDP growth forecasts for Saudi Arabian economy

  • The Moody’s report released on Wednesday maintained the Kingdom’s A1 rating
  • he agency expects higher oil production to boost the Saudi economy

LONDON: Moody’s has raised Saudi Arabia’s GDP growth forecast for 2018 to 2.5 percent from 1.3 percent as it maintains a “stable outlook” for the Saudi economy.
The ratings agency also increased its 2019 GDP forecast to 2.7 percent, well above the 1.5 percent previously predicted, the Kingdom’s Ministry of Finance said.
Moody’s numbers exceed the forecasts of the Saudi Arabian government for the 2019 budget announced in September.
The Moody’s report released on Wednesday maintained the Kingdom’s A1 rating.
The agency expects higher oil production to boost the economy, but also said developments in the non-oil sector will contribute to stronger GDP growth in the medium and long-term.
Moody’s said the Saudi government deficit for the 2018 and 2019 will hover between 3.5 percent and 3.6 percent, a far cry from its previous expectations of 5.8 percent and 5.2 percent.
Moody’s commended Saudi Arabia’s reasonable control of expenditure, even in the face of higher oil revenues.
“In addition to the moderate funding requirements, the government is able to access ample sources of liquidity, from both domestic or international capital markets and financial reserves. It is unlikely to face problems in financing the fiscal deficit,” the report said.
Last week, the IMF lifted its projections for economic growth in Saudi Arabia saying the Kingdom’s economy is expected to grow by 2.2 percent in 2018 and 2.4 percent next year, raising previous projections by 0.5 percent.