2 Listed Firms Involved in Fictitious Deals at Toshiba Unit

Economy

Tokyo, Jan. 22 (Jiji Press)--Two firms listed on the Tokyo Stock Exchange's first section were involved in fictitious transactions unearthed at Toshiba IT-Services Corp., a unit of Japanese machinery giant Toshiba Corp. <6502>, informed sources said Wednesday.

The two companies are Net One Systems Co. <7518> and NS Solutions Corp. <2327>, according to the sources.

Toshiba said Saturday that fictitious sales worth about 20 billion yen were found to have been booked by Toshiba IT-Services in April-September last year.

According to the sources, equipment the Toshiba unit bought from Net One Systems was booked as being delivered to NS Solutions, but the delivery did not actually take place.

Net One Systems and NS Solutions said last month that tax authorities had warned the companies about suspicious transactions involving them in which deliveries may not have been made. Both firms are conducting investigations by setting up special in-house committees.

[Copyright The Jiji Press, Ltd.]

Jiji Press