Japanese prosecutors raided one of the headquarters of Japanese giant NEC in a snowballing arms procurement scandal that has dented trust between government and the private sector.
Toyo Communication Equipment, in which NEC holds a 38.9 per cent stake, is alleged to have overcharged the Japanese Defence Agency #11 million for contracts over five years.
It is alleged that defence agency officials conspired with Toyo Communication senior staff to reduce refunds to the government. A number of high-ranking officials have been arrested.
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