Feb 18 - Former Olympus Corp (7733.T) president Tsuyoshi Kikukawa aided the firm in securing 70 billion yen, a part of which was allegedly used to conceal massive investment losses, the Nikkei business daily reported, citing unnamed sources.
As an executive overseeing general affairs and finance operations in January 2000, Kikukawa, proposed setting aside 30 billion yen ($378.02 million) for an investment fund to develop new businesses and 40 billion yen for investment products, the paper said.
Both investment plans won approval from the company but 16 billion yen of the 30 billion yen for the investment fund was transferred to foreign funds, the daily reported.
The foreign funds used the money to buy loss-laden Olympus investment holdings at book value as a way for the firm to shift the losses off its books, the newspaper said.
Kikukawa began overseeing the general affairs and finance operations in June 1999, right after Olympus allegedly started hiding the big investment losses. He was among the seven men arrested Thursday on suspicion of accounting fraud.
($1 = 79.3600 Japanese yen)
Reporting by Ranjita Ganesan; Editing by Sreejiraj Eluvangal