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NTT takes law into own hands over NEC allegations

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Asia's economic woes may be responsible for a new wave of bizarre business ethics after Japan's largest phone company said it is going to cut its orders to NEC after it emerged that the latter deliberately overcharged the country’s Defense Agency. Nippon Telegraph and Telephone Corp (NTT) wouldn't say by how much it would penalise NEC for it alleged faux pas but revealed that it could be enough to "hurt NEC’s business". NEC –- which supplies radar systems and other equipment to the military -- was slammed earlier this year overcharging the Defense Agency by Y2.4 million, then conspiring to minimise the refund by offering job to retiring agency officials. Several NEC and DA operatives were indicted over the affair, which also prompted the resignation of NEC's chairman. ® Click for more stories Click for story index

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