Main Corruption Issues

     

     Panasonic is one of the  big companies that has involved in several criminal cases of corruption and fraud. In year 2018, Panasonic company had been accused for violating the Foreign Corrupt Practices Act (FCPA). Panasonic's United State subsidiary, Panasonic Avionics Corp. (PAC), a provider of in-flight entertainment and communication systems, has hired foreign officials in Asia and the middle east as consultants to assist Panasonic Avionics Corp. (PAC) in obtaining and maintaining business from airlines around 2007 to 2016. At the same time, Panasonic Avionics Corp. (PAC) was negotiating two agreements with airlines that worth 700 million dollars.

 

    In the end, Panasonic Avionics Corp. (PAC) kept the consultant position and paid him a relatively handsome price of 875,000 dollars within six years even though the position required very little or no manpower. Panasonic Avionics Corp. (PAC) also used unrelated third-party vendors to hide the bribe payment to sales agents in China and elsewhere in Asia and violating the accounting provisions of the Foreign Corrupt Practices Act. In another case, Panasonic determined that sales agents in China and elsewhere had not passed anti-corruption certification, but executives "secretly" rehired them as subcontractors.

    Moreover, in another fraud case, Panasonic fraudulently overstated pre-tax and net income by recognizing earlier than 82 million in revenue for the fiscal quarter ending 30 June 2012. Panasonic Avionics Corp. (PAC) committed fraud by canceling airline agreements and providing false information to their auditors.