“If we had published the story, the result for Yamaichi shareholders and people connected with the company might have been very different.”– Shigeo Abe, investigative journalist

Right now the Olympus scandal is still making headlines in Japan.  Partly because many people find it hard to believe that a company could lose so much money on “investments” then try to cover it up with more bogus investments and company take overs.  Yet something similar happened in the mid 1990s, but then it was deliberately hushed up by the Japanese media!

In 1994 journalist Shigeo Abe, and a few other reporters, did some investigating and discovered that one of Japan’s biggest securities firms, Yamaichi, had hidden millions in losses by creating fake companies.  The deception started in 1992.

Shigeo Abe’s bosses at his newspaper didn’t jump for joy at the thought of having such a scandalous story, instead they ordered him to leave the country! (shimanagashi, the feudal practice of sending political troublemakers away)

“The Yamaichi president had called the Nikkei president and pressured him to not run it. He said: ‘If we go bankrupt it will cause chaos in the economy.’ And that was that.”– Shigeo Abe, investigative journalist

He was gone for three years.  It was at the end of that three years that Yamaichi Securities finally went bankrupt, despite the story not being published (there’s a lesson for you who believe in the “see no evil, hear no evil, speak no evil” philosophy). Japanese taxpayers got stuck with a debt bill equal to several million U.S. dollars (not to mention the huge losses for stockholders).

Shigeo Abe says what is going on with Olympus is similar. He said the Japanese media knew Olympus was in trouble at least one year before it was reported (guess who reported it first?).  He says nothing in the mainstream media is reported without official consent from the government or corporations: “There are no real scoops in Japanese newspapers. They are almost always authorized leaks.”

As a former TV news producer (six years), I can say the same applies to the mainstream U.S. media.

What happened to Shigeo Abe? He decided that the mainstream media is totally ineffective so he create an independent magazine called FACTA (not to be confused with the so called Fair and Accurate Credit Reporting Act). It was his 100% subscriber supported magazine that revealed the Olympus scandal!