Shaw Capital Management Factoring News: Japan Bans Mitsubishi from Contract Bids - Mitsubishi Corp. subsidiaries have been given suspension by the Japanese government in the wake of overcharging issues.
The contract bidding suspension came after the Ministry of Defense became alert that Mitsubishi has overcharged various government agencies in their cost of expenses.
Further details about the incident were not publicized and the company is still assessing the potential impact this ban will have on their company and their affiliates.
Mitsubishi Electric Corp has announced that their business subsidiaries and an affiliate company have all got a notice this week from the Ministry of Defense of Japan. The notice states their suspension from participating in government biddings.
After it was revealed on January that Mitsubishi has overcharged the ministry along with the JAXA (Japan Aerospace Exploration Agency and the Cabinet Satellite Intelligence Center, subsidiaries of Taiyo Musen, an equity affiliate and Mitsubishi Electric (which includes Mitsubishi Space Software, TOKKI Systems Corporation and Mitsubishi Precision) the involved firms have informed the MOD about the overcharges only today.
Through internal investigation, it was discovered that they have also charged more for the ministry by altering records of work across various orders.
The impact of this incident on Mitsubishi’s consolidated market performance still remains uncertain but the firm plans to announce what the public should be alert of as soon as the condition is understood better.