Oki Says Spain Unit Chief Suspended Amid Accounting Probe

Oki Electric Industry Co. (6703) said it suspended the chief executive of the group’s Spanish unit after a probe signaled he may have overstated accounts.

An internal investigation showed the locally hired CEO “committed alleged accounting irregularities, exaggerating the number of receivables,” Tokyo-based Oki said on its Spanish website. Oki Europe has “full confidence” in the Madrid-based unit’s management team, it said in an e-mailed statement. Phone messages seeking comment at the home of the executive, Javier Toledo, weren’t returned.

Oki dropped the most since at least 1974 yesterday after the maker of automated teller machines and communications equipment said the Spanish unit had overstated accounts. As a result, Oki will miss the mid-August deadline for submitting financial reports for the period through June 30, prompting the Tokyo stock exchange to put it on watch for possible delisting. Oki rose 12 percent today to 91 yen at the close in Tokyo.

Full-year earnings forecasts may be revised and Oki’s past financial statements may be corrected after an outside panel draws up a report, Oki President Hideichi Kawasaki told reporters on Aug. 8.

Camera maker Olympus Corp. (7733), which last year admitted to financial irregularities, was fined by the Tokyo exchange and allowed to keep its listing after being put on the watchlist.

To contact the reporter on this story: Emma Ross-Thomas in Madrid at erossthomas@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net