Statue of Limitations

Just a couple more years, and Bandai accountants might have thrown away all the relevant documentation, allowing two former employees to get away with deceptively simple crime. But someone got a surprise when checking over old invoices, leading at least one man to get caught cooking the books at the Japanese company most famous for Gundam.

I say “at least one”, because so far among the accused, only Takashi Utazu (44) has pleaded guilty to the charges, which include talking up the costs of installing the giant Gundam statue in Odaiba in 2013, and pocketing the surplus. LED lighting, which should have cost 10 million yen, was billed to the company at 20 million, leaving Utazu and his alleged accomplice with almost £70,000 in pure profit. And that’s only one incident in a four-year scam, thought to have netted the embezzlers a total of 200 million yen (£1.4 million).

Because of the sheer size and volume of certain franchises, toy companies have to deal with sums an order of magnitude above what simple folk like you and I are used to. A few years ago, when the Japanese government was dickering about the expense of the much-mooted National Media Arts Centre, it was a Bandai staffer who put everybody in their place by pointing out that the sums under discussion cost no more than a single new theme-park ride. It’s very easy, said another, to spend a million dollars. He meant that when you’re dealing with numbers this big, the overheads of simply making enough toys for something to stand a chance of becoming a bestseller turn into phone-number sized entries on a spreadsheet. Bandai won’t miss a few thousand, right?

Well, wrong. Their bean-counters are super-powered, transforming maths robots, and the dating on these reports makes me think that someone flagged up something fishy, seemingly in projects connected to another employee – a man who is currently continuing to protest his innocence, even though he was fired in October 2017 over the audit findings. There’s a statute of limitations on financial reporting – in Japan as in the UK, companies aren’t obliged to hold on to records for longer than seven years. So the thieves might have got away with it, if it weren’t for those meddling accountants.

Jonathan Clements is the author of Anime: A History. This article first appeared in NEO #186, 2019.

 

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