TOKYO, March 7, 2022–Two highly visible corporate irregularities surfaced in Japan on March 4 raising speculation among Japanese government watchers as to the reasons and objectives. Analyzed, they follow the historical pattern: The Japanese authority act in forthcoming — or aggressive — manner at times of crises, as being the current situation over Russia’s invasion of Ukraine.
The Tokyo regional public prosecutors office arrested four board members and senior executives of the SMBC Nikko Securities Co. for manipulating five publicly listed stock issues, probably including those of the Tokyo Stock Exchange, in bloc offer transactions in late 2019 with large shareholders of those issues, officials of the office were quoted by the Japanese media. The four executives were charged for violation of the Financial Products Transaction Law.
On March 4, Hino Motors Corp., the unit of Toyota Motor Corp., announced that the company falsely filed emission and fuel efficiency data to the Ministry of Land Infrastructure and Transport. It said some vehicle models failed to clear MLIT environmental and mileage standards, affecting 113,000 vehicles. On March 7, in a highly unusual move, MLIT officers raided Hino Motor offices without prior notice to the company.
The two alleged irregularities — or, looking from the opposite side, the authority’s active use of force — came in the midst of Russia’s escalating invasion of Ukraine. During the first few weeks after the March 11, 2011 Fukushima nuclear power plant meltdown, Japanese authorities acted aggressively toward the private sector. At that time, police became aggressive enforcers of law asking people about their IDs, travels, and other movements.
###