Mitsubishi Electric pays USD 810 mn in overcharge penalties

Tokyo, Feb 13 (AFP) Mitsubishi Electric said today it has paid the Japanese government about USD 810 million after it inflated fees for defence and other contracts, the latest in a wider overcharging scandal. The company, which makes everything from batteries to nuclear plants, had been barred from bidding on government contracts until it paid the defence ministry some 60.28 billion yen (USD 645 million) in penalties, interest and reimbursements for jacking up its rates. The whopping figure follows payments last month worth 15.4 billion yen for overcharging Tokyo on various contracts, including its space programme. Rival industrial giant Sumitomo Heavy Industries also returned 2.3 billion yen to the defence minstry over its overcharging. The scandal came to light last year, with Mitsubishi Electric admitting that it routinely inflated charges on some of its government contracts stretching back four decades. (AFP) APS KUN 02131814 NNNN