Niigata supplier refunds 2.7 billion yen to Defense Agency over padding+
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[March 10, 2006]

Niigata supplier refunds 2.7 billion yen to Defense Agency over padding+

(Japan Economic Newswire Via Thomson Dialog NewsEdge)TOKYO, March 10_(Kyodo) _ A company in Niigata Prefecture paid some 2.75 billion yen Friday to the Defense Agency in repayment and compensation for padding bills for snowmobiles and other supplies used by the Ground Self-Defense Force, agency officials said.



Ohara Corp. paid up shortly after the agency asked it to pay 1.55 billion yen for what it had overcharged the agency on 220 occasions from fiscal 1998 to 2004 and another 1.2 billion yen as damages, they said.

The agency became aware of the problem around August 2004 via whistle-blowers and made the issue public in December that year after a probe.



Ohara, based in Nagaoka, Niigata Prefecture, was set up in 1940 and produces and sells oil-drilling equipment and other machines as well as snowmobiles.

It is capitalized at 45 million yen and has more than 200 employees.

Annual sales were about 5 billion yen in fiscal 2004.

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