Japan Display Inc. (JDI), a supplier of LCDs to Apple, has amassed several years of financial losses – as well as debts to Apple. Apple has gradually been turning away from LCDs for its smartphone products but still uses them in lap-top computers. JDI has been the subject of a complex 2019 bail-out plan that is thought to include Apple, without which the company has said it may have to close.
The allegations of fraud came from a former employee who was dismissed from the company at the end of 2018 for theft. The employee faced criminal charges that he stole money by authorising payments to fake companies for non-existent outsourcing work. The estimated damage to JDI was previoulsy given by JDI as JPY578 million (about US$5.3 million).
This is a relatively small amount and suggested that the administrative official worked alone.
In a statement JDI said the former employee had subsequently told the company he was acting under instructions from senior management when he was at JDI. JDI responded to this by saying it would set up a committee with independent members to investigate the accounting of the company's finances.
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