OREANDA-NEWS. December 21, 2012. Mitsubishi Electric Corporation (TOKYO: 6503) today issued a report on the results of its internal investigation and resulting countermeasures regarding the overcharging of expenses by its Electronic Systems Group to Japan's Ministry of Defense (MOD), the Cabinet Satellite Intelligence Center (CSICE), the Japan Aerospace Exploration Agency (JAXA), the National Institute of Information and Communications Technology (NICT) and the Ministry of Internal Affairs and Communications (MIC).

 All Mitsubishi Electric Group executive officers and employees are committed to working together to prevent any recurrence and to restore public trust.

 Mitsubishi Electric separately announced today that it expects to record a reserve to refund overcharged expenses for contracts with MOD, CSICE, JAXA and NICT. The company has also revised its financial results forecast for the current fiscal year ending March 2013. Links to related announcements today: - Mitsubishi Electric to Record Reserve for Refund Payments Resulting from Overcharged Expenses on Certain Contracts with Four Public Entities
- Mitsubishi Electric Announces Revised Consolidated Earnings Forecast for Fiscal 2013 (April 1, 2012-March 31, 2013)

Background
 On January 17, Mitsubishi Electric received inquiries from MOD, CSICE and JAXA regarding costs accrued by the company's Kamakura Works. An internal investigation revealed that in certain projects expenses had been overcharged by shifting work records between different orders. On January 27, Mitsubishi Electric notified MOD, CSICE and JAXA of its findings and subsequently launched a detailed investigation. The company also investigated the possible existence of similar cases involving contracts with other customers or those signed by affiliated companies.

 Further investigation revealed that Mitsubishi Electric also had overcharged expenses to NICT and MIC, and that four of the company's affiliated companies had overcharged expenses to MOD. The findings were reported to each customer and a detailed investigation was launched.