Northern, WI 04/02/2013 (usastockreport) – Panasonic Corporation (TYO:6752) (Current: 625.00JPY, Down by 1.11%) suffered heavy losses to the tune of 772 billion yen in 2012 and is still recovering. The market condition is something that may change but it now has a new challenge to face. The company that specializes in making in-flight communications and entertainment systems has come under the U.S regulatory scanner regarding a bribery investigation. The Lake Forest, California-based Panasonic Avionics’ legal department has instructed all employees to ensure that all documentation that could help in the investigation should be preserved. All documents that pointed towards any kind of corruption or bribery rumors or benefits or gifts offered to government officials have to be preserved.
Bribing- against the law
The company sent out two notices to all its employees which also state that conformity doesn’t mean acceptance of any crime. The Foreign Corrupt Practices Act of 1977 bars all American companies as well as those that are listed on the country’s stock exchanges from bribing government officials in any manner. Spokespersons of the U.S Securities and Exchange Commission as well as the Justice department who are responsible for implementation of the act declined commenting on the matter.
The spokesperson for the parent company which is situated in Osaka, Japan refused any comment on the matter.
The Panasonic Corporation (TYO:6752) Avionics unit is the topmost in the filed of in-flight communications and entertainment and most prominent airlines are its customers. The company started expanding into the Avionics space in 1979 and was on of the first companies to start marketing in-flight video equipment to various airlines. The world’s largest carrier, United Continental Holdings Inc (NYSE:UAL) (Current: $30.97, Down by 3.25%) and Singapore Airlines Ltd (SGX:C6L) (Steady at: 10.88SGD) both of who are customers, refused to comment on the matter or say whether they were also included in the investigation.