Japanese Bribe Case Study
THE CASE OF THE JAPANESE BRIBE
I. BACKGROUND OF THE CASE
1976: Former Japanese Prime Minister Kakuei Tanaka was arrested on charges of taking bribes amounting to $1.8 Million Dollars from Lockheed Aircraft Company. Tanaka’s secretary and several other government officials were arrested together with former Prime Minister Tanaka.
Takeo Miki was ousted from office on suspicion of concealing Tanaka’s dealings with Lockheed Aircraft Company.
In Holland, Prince Bernhard resigned from 300 government positions held for allegedly having received $1.1 Million in bribes from Lockheed Aircraft Company in connection with the purchase of 138 F-104 Starfighter Jets.
In Italy, Giovanni Leone, the Italian President in 1970 together with Prime Ministers Aldo Moro and Mariano Rumor were also accused of accepting bribes from Lockheed in connection with the purchase of $100 Million worth of aircraft during the late 1960s.
Scandinavia, South Africa, Turkey, Greece and Nigeria were also among the 15 countries in which Lockheed admitted to having handed out payments and that at least $202 Million in commissions were made by the company since 1970.
Lockheed started using bribes since 1958 in order to outsell Grumman Aircraft, a competitor, for the Japanese Air Force contract.
As per his testimony, William Findley of Arthur Young & Co. the auditors for Lockheed, engaged the services of Yoshio Kodama to act as middleman between Lockheed and the Japanese Government in order to secure the government contract for the purchase of military aircrafts. Several bribes were made by the company to ensure the contract in its favour.
In 1972, Lockheed rehired Kodama as consultant to sell its aircraft to Japan. Lockheed was in dire need to sell its aircraft owing to a series of financial disasters, cost overruns, pushing the company to the brink of bankruptcy in 1970.
A controversial loan guarantee awarded the company amounting to $250 Million helped the aircraft company in averting
I. BACKGROUND OF THE CASE
1976: Former Japanese Prime Minister Kakuei Tanaka was arrested on charges of taking bribes amounting to $1.8 Million Dollars from Lockheed Aircraft Company. Tanaka’s secretary and several other government officials were arrested together with former Prime Minister Tanaka.
Takeo Miki was ousted from office on suspicion of concealing Tanaka’s dealings with Lockheed Aircraft Company.
In Holland, Prince Bernhard resigned from 300 government positions held for allegedly having received $1.1 Million in bribes from Lockheed Aircraft Company in connection with the purchase of 138 F-104 Starfighter Jets.
In Italy, Giovanni Leone, the Italian President in 1970 together with Prime Ministers Aldo Moro and Mariano Rumor were also accused of accepting bribes from Lockheed in connection with the purchase of $100 Million worth of aircraft during the late 1960s.
Scandinavia, South Africa, Turkey, Greece and Nigeria were also among the 15 countries in which Lockheed admitted to having handed out payments and that at least $202 Million in commissions were made by the company since 1970.
Lockheed started using bribes since 1958 in order to outsell Grumman Aircraft, a competitor, for the Japanese Air Force contract.
As per his testimony, William Findley of Arthur Young & Co. the auditors for Lockheed, engaged the services of Yoshio Kodama to act as middleman between Lockheed and the Japanese Government in order to secure the government contract for the purchase of military aircrafts. Several bribes were made by the company to ensure the contract in its favour.
In 1972, Lockheed rehired Kodama as consultant to sell its aircraft to Japan. Lockheed was in dire need to sell its aircraft owing to a series of financial disasters, cost overruns, pushing the company to the brink of bankruptcy in 1970.
A controversial loan guarantee awarded the company amounting to $250 Million helped the aircraft company in averting