Bridgestone issues preliminary report on 'inappropriate payments'

ERJ staff report (DS)

Tokyo -- Bridgestone Corp. has issued an interim report from its Investigation Committee which is studying the issue of inappropriate payments made in the marine hose and other businesses. .

The company said the scope of the investigation has now expanded to the entirety of its industrial products division both in Japan and in its overseas subsidiaries. The investigation has uncovered, "more questionable incidents," although some of these have been cleared up upon further investigation. Nevertheless, the company said, " both the number of incidents and the amount of improper payments are likely to increase especially as suspicious transactions have been found in other products as well as in other regions. "

The company reiterated its intention to withdraw from the marine hose business and has set up a team to manage that process, however, it also noted that, "We are carefully considering the potential harm that may be caused to customers and society as a result of the withdrawal."

Bridgestone said, "We have dissolved the International Engineered Products Department (“IEPD”), which was in issue. The business operations of the Chemical and Industrial Products Division have also been consolidated. In addition, we have reinforced our management and audit system by establishing an Industrial Products and Construction Materials Business Administration Department and a CSR and Audit Unit.

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Press release from Bridgestone