* * * * * * * * * T E R R I E 'S T A K E * * * * * * *<br>A weekly roundup of news & information from Terrie Lloyd.<br>(<a href="http://www.terrie.com">http://www.terrie.com</a>)<br><br>General Edition Sunday, December 11, 2011, Issue No. 642<br>
<br>+++ INDEX<br><br>- What's New -- Another Olympus-style Scandal: JTI<br>- News -- TEPCO claims "ownership" of radiation belongs to <br>others<br>- Candidate Roundup/Vacancies<br>- Upcoming Events<br>- Corrections/Feedback <br>
- News Credits<br><br>SUBSCRIBE to, UNSUBSCRIBE from Terrie's Take at:<br><a href="http://mailman.japaninc.com/mailman/listinfo/terrie">http://mailman.japaninc.com/mailman/listinfo/terrie</a><br><br>BACK ISSUES<br><a href="http://www.japaninc.com/terries_take">http://www.japaninc.com/terries_take</a>, or,<br>
<a href="http://mailman.japaninc.com/pipermail/terrie/">http://mailman.japaninc.com/pipermail/terrie/</a><br><br><br>----------- PBXL TOTAL TELEPHONY SOLUTION (TTS) -----------<br><br>PAYING TOO MUCH FOR MONTHLY CALLING CHARGES? PBXL’s Total <br>
Telephony Solution is the answer for unlimited domestic <br>and international calling. With PBXL cloud telephony and <br>TTS, enjoy a fully managed solution with zero variable<br>costs. No office is too big or too small to save money.<br>
<br>- Unlimited calling within Japan and 23 countries<br><br>- Flat-rate calling charges based on number of phones<br><br>- PBXL will review your current bills and save you money<br><br>Check out our website today at <a href="http://en.pbxl.jp">http://en.pbxl.jp</a><br>
e-mail us at <a href="mailto:info@pbxl.jp">info@pbxl.jp</a> or call us at 03-4550-2557<br><br>------------ PBXL is BUSINESS COMMUNICATIONS --------------<br><br>+++ WHAT'S NEW<br><br>A few weeks ago, after writing about the emerging Olympus <br>
scandal and how it read like a thriller novel, we received <br>a tip from a reader that there is another potentially worse<br>Japanese corporate scandal in the works, involving the <br>international subsidiary of Japan Tobacco, JTI. At first we<br>
didn't take it seriously, because the reporter group <br>breaking the story were working out of Belgrade, and, well,<br>some of the accusations seemed pretty far-fetched -- <br>smuggling, illegal counterfeiting factories, financing the <br>
Syrian Assad regime with indirect kickbacks, and other <br>things.<br><br>This view seemed to be confirmed in a November 4 news item <br>from Reuters, which reported the fact that there were <br>accusations against JTI by the reporter group, Organized <br>
Crime and Corruption Reporting Project (OCCRP), and which <br>on requesting comment from JTI Reuters received the <br>response that: "These matters have all been properly <br>addressed and handled within JTI in line with our overall <br>
stance towards anti-illicit trade and my understanding is <br>that it has been all solved or addressed already as far as <br>JTI is concerned." The spokesperson, Hideyuki Yamamoto <br>based at Japan Tobacco here in Tokyo then went on to <br>
dismiss the credibility of the whistleblowers by saying <br>that the information in the OCCRP report had been <br>circulated for the past two years or so by people believed <br>to have been fired by JTI.<br><br>So, this could all be a hoax, or as Yamamoto seems to be <br>
intimating in his comments to Reuters, a case of sour <br>grapes by a fired employee. However, one of the people who <br>was fired was in fact a senior manager in JTI's own <br>investigating team, Dave Reynolds, and the information <br>
being "circulated" was none other than an April 2010 report<br>by Mr. Reynolds to Japan Tobacco in Tokyo saying that his <br>investigative unit was being harassed and even had email <br>accounts hacked by parties hired by the top management in <br>
JTI, i.e., his own top management were trying to impede <br>his group's investigations. Reynolds implored in his letter<br>for the addressee, a Haruhiko Yamada here in Tokyo, to take<br>the situation seriously and do something about its errant <br>
subsidiary. <br><br>[Continued below...]<br><br>-- NAGAMINE & MISHIMA - Securing Your Success in Japan ---<br><br>Starting a new company in Japan? Looking to streamline<br>your current operations?<br><br>The team of bilingual experts at Nagamine & Mishima is able<br>
to provide high quality accounting, payroll and tax<br>services that both exceed expectations and fit your budget.<br>Our services help customers improve their operations and<br>bottom line results.<br><br>To find out more about our services and how we can help<br>
your business in Japan succeed, please visit our website<br><a href="http://www.nagamine-mishima.com">www.nagamine-mishima.com</a> or reach us directly by telephone<br>at 03-3581-1975 or by email at <a href="mailto:info@nagamine-mishima.com">info@nagamine-mishima.com</a>.<br>
<br>---------- YOUR BOTTOM LINE IS OUR TOP PRIORITY------------<br><br>[...Article continues]<br><br>Reynolds was the VP of Global Brand Integrity at JTI and <br>was fired just days after rendering the report. Shades of <br>
Olympus? He is certainly no lightweight. Much like Michael <br>Woodford of Olympus, Mr. Reynolds has a strong resume, <br>which includes his current position (we found him on <br>Linked In and subsequently had an email conversation with <br>
him) as SIO for Criminal Activities at the FBI. Prior to <br>JTI he was a Foreign Services Officer at the US Department <br>of State and earlier on an intelligence officer at the CIA.<br>A guy like Mr. Reynolds probably doesn't need to make stuff<br>
up as is contained in his report, which you can find on the<br>OCCRP website. <a href="http://www.reportingproject.net/">http://www.reportingproject.net/</a>. Go to the <br>Story Documents tab, and look at PDF #10.<br><br>
Actually Reynold's April 10th report was the climax of a <br>number of reports his team had provided JTI senior <br>management on smuggling, intimidation, blind eyes turned to<br>counterfeiting, kickbacks, Russian mob involvement, and <br>
other nefarious activities. He specifically stated in his <br>final letter to Japan Tobacco that he thought the <br>activities of some of the senior (non-Japanese) management <br>in JTI itself bordered on being illegal and appeared to be <br>
in contravention with a 2007 agreement between the EU and <br>JTI that required JTI to report all instances of smuggling <br>that it uncovered. Pretty serious charges.<br><br>Since Reynolds was fired, OCCRP says it has uncovered <br>
further and more recent documents from March-May this year <br>which show that the hanky panky is still going on. JTI's <br>Middle East business partner, IBCS, run by a fellow named <br>Rami Makhlouf, is doing substantial business with the <br>
Syrian government and according to an EU report funds them <br>through his activities. IBCS doesn't seem to care much <br>about the EU sanctions and as an example shipped 90m duty <br>free cigarettes to Syria four days after the sanctions <br>
were put in place. Further, on May 27th, JTI itself shipped<br>84,000 cases of cigarettes to the Syrian government's GOT <br>organization, including 20,000 cases free of charge. We <br>wonder if JTI can explain why they effectively gave 200m <br>
cigarettes, worth around US$15m to a government that will <br>clearly sell them and pocket the change? Further, we wonder <br>if JTI's parent, Japan Tobacco, can defend why it hasn't <br>taken disciplinary action against its subsidiary's senior <br>
management for such actions?<br><br>We're surprised that this case hasn't seen more light of <br>day in the Japanese press. Probably because OCCRP is in <br>Eastern Europe and because Japan Tobacco here in Tokyo is<br>
good at stonewalling. Unfortunately for Japan Tobacco, <br>OCCRP has accumulated an impressive stack of apparently <br>authentic documents to buttress its case, and although the <br>EU's policing organization for the tobacco industry, OLAF, <br>
doesn't seem very effective, here in Tokyo, Japan Tobacco <br>is opening itself up for a law suit relating to senior <br>management being aware of potentially illegal activities <br>and not doing anything about it.<br>
<br>In our opinion, after speaking to OCCRP and confirming <br>with Reynolds that the documentation is authentic, Japan <br>Tobacco needs to appoint an investigative committee here in<br>Tokyo to find out what its senior managers at JTI have been<br>
doing and potentially hiding. In Europe JTI has legal <br>liability if the OCCRP allegations are true (see <br><a href="http://ec.europa.eu/anti_fraud/budget/cig_smug/2007_en.html">http://ec.europa.eu/anti_fraud/budget/cig_smug/2007_en.html</a>).<br>
Further, the Tokyo Prosecutors office should also get <br>involved, reviewing the many documents that OCCRP has, to <br>see if any Japanese laws have been broken. At very least <br>there should be some action against those directors <br>
responsible for management control of JTI.<br><br>What the JTI case does suggest is that Olympus is just the <br>tip of the iceberg, it's not a one-off situation. As <br>Japanese firms which are used to keeping skeletons in the <br>
family closet start to go international, they need to <br>understand that there are rules and people which they <br>can't control and it is all too easy to have things wobble <br>out of control. <br><br>The JTI case will also confirm for many foreign <br>
shareholders that major Japanese firms are not serious <br>about corporate governance, and that this will ultimately <br>be a problem for the Japanese government. Indeed, the JTI <br>case is much more a government problem than Olympus was, <br>
since the government owns 50% of Japan Tobacco. Given that <br>point, we believe that the DPJ should tell Japan Tobacco's <br>top management to get the problem sorted out before it <br>potentially embarrasses the country even more than the <br>
Olympus case has done.<br><br>...The information janitors/<br><br>***------------------------****-------------------------***<br><br>--------------------- Delta Air Lines ---------------------<br><br>Earn more miles with Delta Air Lines’ Co-branded Credit <br>
Cards and SkyMiles partners<br><br>With Delta Air Lines’ more than 100 SkyMiles partners, it’s<br>so easy to earn more miles each time you travel, wine, <br>dine, shop on or offline, or even book a hotel or rent a <br>car. And never more so than when you use a Miles Co-branded<br>
Credit Card. Like to learn more about SkyMiles and begin<br>enjoying its benefits? Then please click here now.<br><br>Terms and Conditions: SkyMiles partner offers subject to <br>the terms and conditions of each individual offer. See <br>
individual offers for details. All SkyMiles program rules <br>apply to SkyMiles program membership, miles, offers, mile <br>accrual, mile redemption and travel benefits. To review the<br>rules, please visit Membership Guide & Program Rules. All <br>
SkyMiles partner offers are subject to the terms and <br>conditions of each individual merchant. Offers, rules and <br>participating merchants are subject to change without <br>notice. Offers are void where prohibited by law. Other <br>
restrictions may apply.<br>-----------------------------------------------------------<br><br><br>+++ NEWS<br><br>-> TEPCO claims "ownership" of radiation belongs to others<br>-> Whaling fleet subsidized from Tohoku funds<br>
-> Meiji baby powder turning into scandal<br>-> Just 238,000 taxis<br>-> Jetstar to significantly increase employees<br><br><br><br>=> TEPCO claims "ownership" of radiation belongs to others<br><br>In a farcical court appearance, the lawyers for Tokyo <br>
Electric Power Company (TEPCO) have tried the novel <br>approach of claiming that the radiation fall-out from its <br>exploding reactors "belongs" to the prefectures and cities <br>it landed on, rather than TEPCO itself. The claim was an <br>
attempt to disavow liability for the fall-out and <br>subsequent remediation and compensation costs. Fortunately <br>the court threw out the claim. ***Ed: Yup, OK, TEPCO has to<br>pay out JPY20trn in compensation so it has the right to try<br>
to reduce its obligations -- but there is a moral limit and<br>trying on an argument like this just makes TEPCO look even <br>more despicable in the public's eyes. Do these guys have <br>any commonsense?** (Source: TT commentary from <br>
<a href="http://thereporter.com">thereporter.com</a>, Dec 8, 2011)<br><br><a href="http://www.thereporter.com/opinion/ci_19495482">http://www.thereporter.com/opinion/ci_19495482</a><br><br>=> Whaling fleet subsidized from Tohoku funds<br>
<br>A storm of criticism has been unleashed abroad by a <br>Fisheries Agency admission that JPY2.28bn is being used <br>from the Tohoku Disaster Recovery funds to pay for this <br>years whaling fleet expenses in the Southern Ocean. The use<br>
of the funds was defended as supplying work for ports where<br>some of the whaling fleet is based, such as Ishinomaki. <br>However, Sea Shepherd is saying that not only is the <br>diversion immoral but that also donations from the public <br>
form part of the amount being used. ***Ed: Whether this <br>last accusation is true or not is hard to prove, but there <br>is no doubt that money going to the whaling fleet and its <br>protection is clearly NOT going to the victims of the <br>
tsunami. (Source: TT commentary from <a href="http://independent.co.uk">independent.co.uk</a>, <br>Dec 9, 2011)<br><br><a href="http://ind.pn/taETpk">http://ind.pn/taETpk</a><br><br>=> Meiji baby powder turning into scandal<br>
<br>Not catching cesium in its Step baby milk powder is bad <br>enough, but it has now emerged that Meiji Milk actually <br>ignored customer concerns after a blogger announced <br>independent test results on his website. The level of <br>
radiation is below government mandated levels, at 30.8 <br>becquerels per kilogram, but since Step is used by <br>mothers with babies 9 months and up, consumers are shocked <br>to say the least about the presence of Cesium in the <br>
powder. ***Ed: This is really an unbelievable situation, <br>and we're surprised it hasn't become a full-blown scandal <br>yet -- we're guessing it will. Japanese mothers are highly <br>sensitive to the health needs of their babies, as evidenced<br>
by the piles of water bottles even now in apartments around<br>the city with young families. Our guess is that Meiji's <br>Step powder sales will plummet after this.** (Source: TT <br>commentary from <a href="http://japantimes.co.jp">japantimes.co.jp</a>, Dec 11, 2011)<br>
<br><a href="http://www.japantimes.co.jp/text/nn20111211a1.html">http://www.japantimes.co.jp/text/nn20111211a1.html</a><br><br>=> Just 238,000 taxis<br><br>Legislation passed in 2009 to consolidate the cab industry,<br>
coupled with an ongoing sluggish domestic economy have <br>dealt a major blow to taxi firms, reducing the number of <br>cabs in service from a peak of 400,000 cabs some years ago,<br>to just 197,400 company cars and 41,200 private cars. This <br>
is the lowest number in 33 years. ***Ed: Darn cabs are <br>getting expensive, too. JPY750 for just 2km -- who wants <br>to be paying that kind of money when the trains are so <br>much more reliable?** (Source: TT commentary from <br>
<a href="http://e.nikkei.com">e.nikkei.com</a>, Dec 11, 2011)<br><br><a href="http://e.nikkei.com/e/ac/tnks/Nni20111210D10JFF04.htm">http://e.nikkei.com/e/ac/tnks/Nni20111210D10JFF04.htm</a><br><br>=> Jetstar to significantly increase employees<br>
<br>Jetstar Japan seems to be doing well these days, <br>announcing that it plans to hire up to 450 cabin crew in <br>the next 3-5 years, coinciding with its expansion plans for<br>Japan. Overall, the company says it will hire 1,500 <br>
employees in the next 5 years. This coincides with the <br>firm's plans to start flying domestically in Japan from <br>next year, and outbound international flights from 2013. <br>(Source: TT commentary from <a href="http://e.nikkei.com">e.nikkei.com</a>, Dec 9, 2011)<br>
<br><a href="http://e.nikkei.com/e/ac/tnks/Nni20111208D0812N03.htm">http://e.nikkei.com/e/ac/tnks/Nni20111208D0812N03.htm</a><br><br><br><br>NOTE: Broken links<br>Many online news sources remove their articles after just a<br>
few days of posting them, thus breaking our links -- we<br>apologize for the inconvenience.<br><br>***------------------------****-------------------------***<br><br>+++ CANDIDATE ROUND UP/VACANCIES<br><br>=> BiOS, a Division of the LINC Media group, is actively<br>
marketing the following positions for customers setting up<br>or expanding in Japan, as well as other employers of<br>bilinguals.<br><br>** HIGHLIGHTED POSITION<br><br>BiOS is urgently looking for a Data Center Sales Associate <br>
with experience in IT sales at our client’s office in the <br>Tokyo area. The candidate will be responsible for making <br>sales proposals primarily to existing clients regarding the<br>company’s global data centers and other IT outsourcing <br>
services. You will be part of a team of 3 to 5, and will be<br>assigned one or several clients depending on the size of <br>the client.<br><br>You will also be responsible for negotiating proposals for <br>network construction projects for clients whose systems the<br>
company operates.<br><br>Due to the technical nature and demanding work environment,<br>this position is suitable for someone with solid experience<br>in sales within the IT industry. In addition, since this <br>role requires direct negotiations with both Japanese and <br>
international clients, business-level communication skills <br>in English and fluent Japanese will be required.<br><br>Remuneration is JPY4m – JPY7m depending on your experience <br>and skill level.<br><br>** POSITIONS VACANT<br>
<br>- Cabling Engineer, BiOS, JPY3.5M – JPY4M<br>- Service Delivery Manager, global IT co, JPY8M – JPY10M<br>- Desktop Support Engineer, global law firm, JPY4M – JPY5M<br>- Project Mgr, global LCD/ceramics maker, JPY 8M – JPY11M<br>
- Helpdesk Support Engineer, BiOS, JPY4M – JPY4.5M<br><br>Interested individuals may e-mail resumes to:<br><a href="mailto:tomohiro.kimura@biosjp.com">tomohiro.kimura@biosjp.com</a><br><br>** BiOS Job Mail<br><br>Every 2 weeks BiOS sends out a regular communication to its<br>
job seeking candidates, called BiOS Job Mail. Every edition<br>carries a list of BiOS's current and most up-to-date<br>vacancies, with each entry featuring a short job<br>description and a direct link to the main entry on the BiOS<br>
home page. Regardless of whether you are unemployed and<br>searching, thinking about a career change, or just curious<br>to know if there is something out there that might suit you<br>better, the BiOS Job Mail newsletter is an easy and<br>
convenient way for you to stay informed. If you would like<br>to register for the BiOS Job Mail, or to find out more,<br>please email <a href="mailto:kenji.sakota@biosjp.com">kenji.sakota@biosjp.com</a>.<br><br>Interested individuals may e-mail resumes to:<br>
<a href="mailto:tomohiro.kimura@biosjp.com">tomohiro.kimura@biosjp.com</a><br><br>-----------------------------------------------------------<br><br>--------- BIOS - Bilingual IT Systems and Support ---------<br><br>BiOS full-service IT solutions has a new service.<br>
<br>Now the largest independently owned bilingual IT support<br>company in Tokyo, BiOS offers some of the most competitive<br>services available to multinationals whether large or<br>small.<br><br>Data Center staff and managed services, Help Desk, desktop,<br>
and network support. Server virtualization, cloud computing<br>hosting and solutions, general software development. <br><br>For more information on these and other SI and IT services,<br>in English or Japanese:<br><br>Phone: (03) 4588-2220, Email: <a href="mailto:solutions@biosjp.com">solutions@biosjp.com</a><br>
Web: <a href="http://www.biosjp.com">www.biosjp.com</a><br>-----------------------------------------------------------<br><br>***------------------------****-------------------------***<br><br>+++ UPCOMING EVENTS/ANNOUNCEMENTS<br>
<br>No events for this week.<br><br>***------------------------****-------------------------***<br><br>+++ CORRECTIONS/FEEDBACK<br><br>In this section we run comments and corrections submitted<br>by readers. We encourage you to spot our mistakes and<br>
amplify our points, by email, to <a href="mailto:editors@terrie.com">editors@terrie.com</a>.<br><br>*** In TT641 we delved into possible reasons for the <br>Japanese permanent singles rate increasing as it has.<br><br>=> Reader comments: <br>
<br>Excellent analysis of an important issue.<br><br>One thought, I think it's important to look carefully at <br>the big percentage citing "because of work and study <br>commitments." In addition to people working hard to support<br>
themselves, I also think that there is an unfortunate trend<br>in Japan in the past 10 years or so for companies to keep <br>their staffs extremely lean, and to push them to work even <br>harder. In other words, frankly I think that companies are <br>
to blame in part for this problem of people not dating and <br>procreating, due to the way that they treat their <br>employees.<br><br>For example, I hear anecdotally many tales of employees at <br>Japanese firms who work until late (e.g. 10 or 11 pm) <br>
every single night. These are not just isolated cases, but <br>entire workplaces with large numbers of people where this <br>is the norm, and sadly is considered normal. Of course this<br>is not something new in Japan, but I do believe it's <br>
getting worse as pressure on companies is stronger than it <br>was in the better days of the economy, and they try to do <br>more with less. It always seems to be the employees who <br>take the brunt of it.<br><br>With this kind of work schedule, there is no time to meet <br>
anyone in after-work activities, and then employees spend <br>the whole weekend trying to recover from the workweek. Even<br>if one of these hard workers should have a girlfriend, she <br>would probably dump them soon because they wouldn't see <br>
them much and they wouldn't be much fun to be around when <br>they do. And if one of them is already married, not much <br>time or energy for baby-making, or child-rearing.<br><br>The karoshi cases that come up with depressing frequency <br>
also show examples of what some Japanese companies <br>(amazingly) consider appropriate ways to manage their human<br>resources. For every person who dies from such exhausting <br>work schedules, there are undoubtedly scores more who are <br>
tired, depressed, and/or isolated from working so hard, and<br>that as a result are unable to engage in dating or <br>procreating.<br><br>I see many companies in Japan putting up "work-life <br>balance" posters but I think that more fundamental change <br>
is needed. Sadly, I don't see it coming anytime soon. <br><br>***********************************************************<br>END<br><br>SUBSCRIBERS: 8,294 members as of Dec 11, 2011<br>(We purge our list regularly.)<br>
<br>+++ ABOUT US<br><br>STAFF<br>Written by: Terrie Lloyd (<a href="mailto:terrie.lloyd@japaninc.com">terrie.lloyd@japaninc.com</a>)<br><br>HELP: E-mail <a href="mailto:Terrie-request@mailman.japaninc.com">Terrie-request@mailman.japaninc.com</a><br>
with the word 'help' in the subject or body (don't include<br>the quotes), and you will get back a message with<br>instructions.<br><br>FEEDBACK<br>Send letters (Feedback, Inquiries & Information) to the<br>
editor to <a href="mailto:terrie.lloyd@japaninc.com">terrie.lloyd@japaninc.com</a>.<br><br>ADVERTISING INFORMATION<br>For more information on advertising in this newsletter,<br>Contact <a href="mailto:ads@japaninc.com">ads@japaninc.com</a>.<br>
<br>SUBSCRIBE<br>Get Terrie's Take by giving your name and email address at<br><a href="http://www.japaninc.com/newsletters/free_sign_up">http://www.japaninc.com/newsletters/free_sign_up</a>, or go<br>straight to Mailman at:<br>
<a href="http://mailman.japaninc.com/mailman/listinfo/terrie">http://mailman.japaninc.com/mailman/listinfo/terrie</a><br><br>BACK ISSUES<br><a href="http://www.japaninc.com/terries_take">http://www.japaninc.com/terries_take</a><br>
or, <a href="http://mailman.japaninc.com/pipermail/terrie/">http://mailman.japaninc.com/pipermail/terrie/</a><br><br>Copyright 2011 Japan Inc. Communications Inc.<br><br>----------------- Japan Inc opens up Japan ----------------<br>
<br>J@pan Inc is Japan's only independently published English-<br>language business website. Authoritatively chronicling<br>online the business trends in Japan, each posting brings<br>you in-depth analysis of business, people and technology in<br>
the world's second largest economy.<br><br>Visit <a href="http://www.japaninc.com">www.japaninc.com</a> for the best business insight on<br>Japan available.<br>-----------------------------------------------------------<br>
<br><br><br><br><br>