Mitsubishi Electric CEO Takeshi Sugiyama said he would step down, claiming responsibility for “three decades of systematic fraud” by a company that has falsified inspection records of Mitsubishi Electric’s air conditioners and brake compressors on trains over the years.
“I am shocked by all of this,” said Mr. Sugiyama at a press conference (quoted from Reuters).
Documentation with data on the checks of air conditioners and compressors, as it turned out, has been falsified since 1985. During this time, the company supplied 84,600 air conditioners to 80 railroad companies and 1,500 compressors to 20 companies. The company notes that the use of equipment, the documentation of which has been falsified, does not pose a threat to consumers. According to Mr. Sugiyama, the management of Mitsubishi Electric learned about the falsification of documents in mid-June, but decided not to report it at the annual meeting of shareholders on June 29. A full report on what happened, as well as a list of measures that will be taken to resolve the problem, the company intends to submit in September.
Takeshi Sugiyama, who has been with Mitsubishi Electric for over 40 years and has served as CEO since 2018, apologized and promised to appoint a successor later this month.