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Mitsubishi Electric pays $810 mn in overcharge penalties

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(Globalpost/GlobalPost)

Mitsubishi Electric said Wednesday it has paid the Japanese government about $810 million after it inflated fees for defence and other contracts, the latest in a wider overcharging scandal.

The company, which makes everything from batteries to nuclear plants, had been barred from bidding on government contracts until it paid the defence ministry some 60.28 billion yen ($645 million) in penalties, interest and reimbursements for jacking up its rates.

The whopping figure follows payments last month worth 15.4 billion yen for overcharging Tokyo on various contracts, including its space programme.

Rival industrial giant Sumitomo Heavy Industries also returned 2.3 billion yen to the defence minstry over its overcharging.

The scandal came to light last year, with Mitsubishi Electric admitting that it routinely inflated charges on some of its government contracts stretching back four decades.

hih/pb/pj

http://www.globalpost.com/dispatch/news/afp/130213/mitsubishi-electric-pays-810-mn-overcharge-penalties