My opinion of this week(467):
Two auditing function
In My opinion of this week dated March 25th, I wrote the fact that the
accounting auditing firm for Livedoor decided to withdraw the work
for they could not find window dressing executed by top leaders of the
firm. It is rather obvious that the accounting auditing firm which is
very professional about such accounting system must have found out some
fact of window dressing in any ways. I said they must be punished one way
or the other for what they have done.
I was quite right. The TV news yesterday reported two certified public
accountants who were engaged in auditing of Livedoor were arrested by
a prosecutor for their works that were against Stock Exchange Law in Japan.
Two groups of people that are directors of Livedoor and are CPAs in charge
were arrested already by prosecutors for their illegal conducts. But there
is one other function to be blamed although whether or not they are to be
prosecuted.
When it comes auditing of firms, accounting auditing to be done by
CPAs is not only one auditing function. They are external auditing
functions. There is one more important auditing function which is internal
in nature. Those internal auditing are made by corporate auditors. The
function is to audit all sort of management works done by directors of the
firm including accounting and financial phase of management.
There are many cases in which those auditing function to be made by
corporate auditors and accounting auditing firms are not working as
designated in the commercial code and stock exchange law. Many arguments
for improvement of corporate governance system rises when we see many of
such window dressing accidents such as Livedoor and Kanebo case. I don't
agree with such argument. No more laws and rules are necessary. Many of
such scandals will be avoided if those auditing function designated in
the current laws work as they specify.
It seems that Japanese corporate governance system still include some
shortcomings. But the issue is not the shortcomings of laws and of
capabilities of men in charge of auditing works.
The biggest shortcoming is the lack of compliance of people in charge of
auditing works.
2005/4/1
Tadashi HAYASE
My opinion of this week(468)
Expectation for Ozawa Democratic Party
Ichirou Ozawa was elected to the President of Democratic Party of Japan
yesterday. Although he is a kind of old 64 years, he was accepted with
a fresh impression compared with Naoto Kan who is younger but played
the president of the party two times in the past. That's the main reason
why Ichirou Ozawa he was elected at this time.
I agree with his assertion in his book that Japan should become an ordinal
country. I also agree with his another assertion that Japanese should
establish self-definition themselves.
Japan is strange country in which people lack some fundamental mind as
Japanese. Japanese are people who are very stereotype in mind and lack
individual ideas and sense of value.
Those are two points of element to be improved to make Japan more
established country in every sense including politics, and all social
environments of the society.
In the election campaign at this time, Ichirou Ozawa said that the
biggest point of structural reform in Japan today is the change of power.
Democratic Party of Japan must win the power replacing Liberal Democratic
Party to establish structural reform.
Although Prime Koizumi stressed the importance of structural reform,
many scandals by bearcats still continue. Why is this?
It is because long monopoly of politics by LDP has corrupted the whole
bearcats structures. Change of power in some appropriate frequency is
absolutely necessary to stop such corruption.
Japanese are the people who do not understand such necessity. I am
always disappointed to see many of political critics and people in
general begin to criticize Democratic Party how they are weak in their
organizational structure, how they are not united in their manifesto
preparation and so forth whenever there are some elections.
Yes, that's true. They are not as strong as LDP in many respects. But
why are people not more generous about their weakness and corporative to
make them stronger in all aspects as political party.
Unless Democratic Party of Japan do not gain stronger power, there will
be no two-party system in Japan. People are requested to have a kind
of long range strategic idea for Democratic Party to gain power.
I was very disappointed with many of very trifling question asked by
news reporter at the news conference after the election. Many asked
how Ichirou Ozawa would treat Naoto Kan in new top management team.
Ozawa's reaction to such question was not quite eager obviously.
He might have expected to get a question like the following: "Japan is
now in trouble in many fields. What is your 100 years thoughts and
strategies to make this country more healthy and active again in every
respects."
This will be one of the main issues to be argued in comparison with
that of LDP in coming elections. Ichirou Ozawa is asked to present
this when the party shows the whole mananifesto.
2006/4/8
Tadashi HAYASE
My opinion of this week(469):
Amendment of the Fundamental Law of Education
There were many arguments on this topics during this week. Liberal
Democratic Party and Komeitou Party finally agreed to put two key
words, i.e. respect and the country into the revised law trying to
avoid to use the word patriotic spirit. That does not make much
difference at any rate.
Not only opposition parties but also many mass media and critics
expressed their concern and opposition to revise the law in that
direction. Many said it would be the beginning of wartime militarism.
Some others worried about that would lead to further enforcement of
Kimigayo (national anthem) and hoisting of the national flag at
various school events.
I really don't understand what both sides insisted on this issue
whether or not I am for or against the revision of the law in that
way. I wonder why are those argument are only concerned about
unimportant details.
As Japanese citizens, it is quite right to teach children the basic
patriotic spirit. What's wrong with it? It is quite necessary to teach
children to respect their homeland and home country. Such education is
being done at any countries of the world as a matter of fact.
But we have to come back to think the motive why amendment of Fundamental
Education Law has been called for urgent attention at this time. This
is because we observe today serious deterioration of education at school.
There are many case of murders by children. There are many truant cases
at school.
Facing to this situation, many politicians and bureaucrats of education
fields began to think it is necessary to revise Education Fundamental
Law so that they can improve the present circumstance. This is fine.
But the question is why the key words for the revision is to "respect
for the country". Before respecting the country, it is necessary to
teach children to love their families, isn't it? Let them teach first
to love their families, friends, people in the communities and so on.
Let them teach to respect their parents at home and teachers at school.
There were no such serious relentless bullying as today in the past.
Let them teach to make a good friends in their daily life. There existed
more normal relationship between children in the past. It seems that
they are lost today.
If the purpose of the amendment of Fundamental Education Law is to
bring up good citizens , their fist target is to teach children to
love people around them namely families at home friends at school and
so forth.
If they are such good people as individual, they will become good
Japanese citizens as well. They will become normal Japanese who love
their home country.
No one will deny this process. The key word to amend the law is not
"love for the country" but "love for the people" as far as my belief
is concerned.
2006/4/15
Tadashi HAYASE
My opinion of this week(470):
Privatization of NHK (Japan Broadcasting Corporation)
There were many scandals happened at NHK in the past few years. Most
people have believed that there will be no such scandals any more.
NHK tried to make several organizational reform including the change
of top management people.
But another scandals happened recently which was concerned with the abuse of
traveling expenses by employee. President Hashimoto appeared at news
conference and apologized it saying that such misconducts would never
happen again. People must have tired of hearing such words now.
Such misconducts as bogus business trip often happen at public sectors
and half public organization like NHK. That rarely occurs at ordinal
private firms.
While President Hashimoto apologized for such misconducts, he continued
to appeal the necessity of collecting subscription fee for NHK. If many
more household refused to pay subscription fee for NHK, management of
entire NHK will be at stake. So it's not difficult to understand that
President Hashimoto work hard to improve the situation concerning the
collection of the fee.
According to the news report, one very serious fact concerning the
collection of fee was disclosed. I don't know who is taking initiative
to propose the rule. The new rule is to make some punishment for people
who refused to pay subscription fee.
This seems to be very serious once such legislation is put in force. As
a matter of facts, many lawmakers including some of ruling parties might
be expected, such proposal is opposed by many lawmakers and will not be
presented for the diet.
There should be no such laws which force people to subscribe NHK whether
or not they like it. If they refuse to pay the fee, they would be punished
in one way or the other. This is obviously against the basic principle
of constitution.
Facing to such circumstance, it is now good opportunity for people to think
over the current broadcasting law relating reception of broadcast of NHK.
What kind of contract is it ? Why do people have to receive NHK broadcast
compulsorily?
Why do people who insist to say they are not watching any NHK programs at all
have to pay subscription fee? What will happen if people refuse to pay the
fee? There are so many issues which are not quite clear at the moment. And
many number of people are not paying the fee now.
As I wrote earlier, I have personally admitted the existence of NHK as
public broadcasting corporation. I admit the fact there many good programs
provided by NHK as a public organization. So I have paid so far the
subscription fee without any doubt or any serious concern.
But I have changed my mind a little bit now. I begin to consider the
possibility that NHK is also to be privatized as Japan Postal
Administration. NHK is not a sanctuary any more.
The reason for that change is obvious. There were so many scandals in the
past. And people have been disappointed to see many of inadequate actions
taken by NHK executives ageist such scandals.
I don't like to watch TV commercials but I dare to accept them when NHK
would be privatized. I believe all TV broadcasting corporation including
new born NHK would compete each other to present a good programs. That
is normally seen in many countries.
When it comes to a good educational programs, I have some concerns. I am
not sure whether or not any of such privatized broadcasting corporations
will be able to present many of such good educational programs including
foreign language and many other cultural programs now presented by NHK
educational channel.
Some special consideration will be necessary to let such educational
programs continue to exist even after the privatization of NHK.
2006/4/22
Tadashi HAYASE
My opinion of this week(471):
Horie finally free on bail
Livedoor Co. founder Takafumi Horie, 33, who faces trial for accounting
fraud and securities law violations, was freed Thursday night from the
Tokyo Detention@House, a day after paying a 300 million yen bail and
after more than three months behind bars.
Takefumi Horie paid the 300 million yen by check as soon as bail was
granted Wednesday, but prosecutors appealed the decision to let him
out, and thus his freedom was put on hold.
The Tokyo District Court rejected the appeal Thursday and allowed
him to walk@free for the first time since his Jan. 23 arrest.@It was
such a long time detention. But according to the report, his release
is still rather fast considering the fact that he does not still plead
guilty to a criminal charge. However, court decided his release on bail
based on new court rule starting in the year 2009.
I personally think that 95 days detention of this case is very long
compared with some other cases which are similar charges related with
Stock Exchange Law. Kokudo Keikaku Chairman Tsutumi was indicted on
charges of the same law last spring. But his detention period is only
about half of that of Horie. What's more, he got a suspended sentence
after rather very short trial period.
On the other hand, Horie is said to have little chance to win a
suspended sentence for he has not admitted the charges so far against
him.
As a mater of fact, Tutumi's case seemed to be more serious considering
the fact that the illegal conducts had been done for much longer years
compared with the case of Livedoor.
Pains and penalties seem to fully depend on how persons under suspicion
are cooperative with prosecutors. I do not thoroughly deny it and understand
some necessity of it. But is this recognized as an absolute gospel?
Several professional lawyers commented some explanation and backgrounds
about Horie's detention periods but little said the detention period
was too long. Shizuka Kamei, a lawmaker from Hiroshima, who won over
Horie after such a serious competition at general election last summer is
rather sympathetic with Horie. He said such long time detention is a kind
of physical torture executed by prosecutors. I agreed with him.
Don't misunderstand me when I say this. I am not talking about the contents
of sentence to be executed against Takafumi Horie. I am talking about the
length of detention against culprits decided by prosecutors.
There are many cases in the past that detention period was so long even
for rather light criminal cases. Culprits were just put in detention
even without any inquiry and questioning so far as they do not admit their
charges.
Yes, it may a kind of physical and spiritual torture and abuse of state
power under the name of justice. Don't you agree with it?
2006/4/29
Tadashi HAYASE
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