Announcement Regarding the Investigation Report of the Third - Party Committee
TOKYO, June 21, 2013 (GLOBE NEWSWIRE) -- Following our announcement dated
January 7th, 2013 titled the "Announcement Concerning the Resolution to
Establish a Third Party Committee in Response to the Recent Media Reports
about Our Business in the Philippines," in conjunction with a casino resort
project in the Philippines to be developed by Universal and the affiliated
companies, there were certain media reports which implicated that
unjustifiable fund had been offered, among other things. We have decided to
set up a third party committee consisting of attorneys and others who have no
conflict of interest with Universal to confirm objective facts concerning the
said case, as required by the guideline for a third-party committee formulated
by the Japan Federation of Bar Associations (dated July 15, 2010).
Upon the receipt of the investigation report from the third party committee
dated June 21, 2013, we hereby wish to make a further announcement upon the
content of it and our plan in the future.
For the full content of the investigation report from the third party
committee, please see the "the Investigation Report (Summary)
<http://www.universal-777.com/en/ir/releases/2013/20130621_e.pdf>". The report
1."the Freeh Report" is regarded lacking credibility,
2.regarding the payment of 40 million dollars, it is concluded that
(i) Universal mistakenly paid 2.5 million dollars due to the lack of
prompt and appropriate report on the road problem from the staff in charge
of the Philippines project to the management of Universal.Therefore no
evidence was found to implicate this payment be bribery
(ii) 10 million dollars was found to be a compensation for loss arranged
by ex-employees by way of flow back of the fund; and
(iii) 5 million dollars payment was made without going through proper
internal accounting procedure.However, the investigation up to date has
not provided any evidence to prove bribery (currently an action is in
progress as to this payment and the clarification of the facts must be
made in accordance with its progress.)
It has become evident that, against the doubts expressed in certain media
reports about an alarming amount of bribery offered by Universal, the alleged
fact does not exist.
Although the investigation report by the third party committee concentrated on
clarification of the factual relationships on the credibility of the Freeh
Report and the payment of 40 million dollars, it also points out that
Universal had governance problems which became source of the current issues.
We take seriously our short-comings of the internal regulations and corporate
governance even before this investigation.Universal has worked on the systems
to strengthen the management surveillance over the Overseas Business Division
in the current issue (the third party committee pointed out that Universal
governance did not cover this division) and had introduced company-wide
electronic circular approval procedure thereby no expense can be paid without
physically taking proper steps.
In addition, the third party committee proposed that Universal need to
establish a compliance system covering the whole business of Universal.We
firmly reconfirmed that we need to implement the above to develop our gaming
The investigation made it clear that there is no fact that Universal offered
illegal fund.It also revealed that despite our governance problem,
significant amount of fund was transferred in breach of the internal
regulations by the employees in charge of arranging remittance.It also became
clear that we were in a position of victims in a sense.
The cause of this problem is still not clear, even if there was a shortfall of
our governance system, nor the intention of the employees in charge of
remittance who breached the internal regulations nor their relationship with
the third party outsider.
The third party committee announced to make further efforts to investigate and
identify where the responsibility directly rests by appointing additional
appropriate persons in charge of investigation.The investigation will
continue in the future with further endeavors.
CONTACT: Universal Entertainment Corporation (JASDAQ Code: 6425)
PR&IR OFFICE Nobuyuki Horiuchi,
Assistant General Manager
Email address: email@example.com
Ariake Frontier Bldg, A, 3-7-26 Ariake, koto-ku,
Tokyo, 135-0063 JAPAN
TEL: +81-3-5530-3055 (switchboard)
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