An example of employee fraud has come to light.
The suspect, a former section manager at Toray, is believed to have personally prepared materials such as case-description documents for promoting medical devices and translations of medical papers, then billed Toray as though they had been ordered from outside vendors. The suspect is believed to have defrauded the company of a total of approximately ¥200 million over the 14 years since 2000.
In this case, the former manager was arrested on suspicion of having their former wife and others pose as outsourcing vendors, placing orders with them, and then personally producing the actual deliverables to defraud Toray of cash. To defraud a company of as much as ¥200 million... Some of it may be beyond the statute of limitations, but the former manager presumably did not declare it, so the taxes must be considerable as well.
To prevent this, put a system in place in which another person checks the vendor when one is selected. Use websites, search results, materials submitted by the other party, and information from credit-reporting companies. Some places provide information for about ¥1,000 per company, so it is not all that expensive.
As a manufacturer, Toray was probably very rigorous in its purchasing management, but this time the checks may have been missed because it involved outsourced translation and similar work. Be careful with unusual outsourced services involving large amounts.