Olympus CEO resigns over alleged illegal drug purchases

The foreign chief executive of Japan’s Olympus has resigned following an investigation into drug trafficking allegations, the medical device maker said.

Chief Executive Officer Stefan Kaufmann, who has led the company since April 2023, resigned at the request of the board of directors, Olympus said in a statement on Monday.

Olympus said it launched an investigation after receiving allegations from an unidentified source.

“Following the investigation, the board of directors has unanimously determined that Mr. Stefan Kaufmann may have engaged in conduct that is inconsistent with our global code of conduct, our core values ​​and our corporate culture,” Olympus said in a statement. .

Olympus Chairman Yasuo Takeuchi will take the reins as CEO “for the time being” while the board’s nominating committee considers a permanent successor, the company said.

“Olympus deeply apologizes for the concern this has caused to our shareholders, customers and all stakeholders,” the company added.

Kaufmann has been a member of the board of directors since 2019 and has been with the company since 2003.

The German national is the first non-Japanese executive to be appointed CEO of the company since Michael Woodford, a British executive who was fired in 2011 after exposing colleagues for falsifying company records to hide $1.7 billion in losses.

Al Jazeera was unable to reach Kaufmann for comment.

Olympus shares fell more than 7 percent on the news.

Founded in Tokyo in 1919, Olympus was primarily known for producing cameras before becoming the world leader in endoscopes.

Japan has strict anti-drug laws, which have ensnared foreign businessmen in the past.

In 2015, Julie Hamp, an American public relations executive for Toyota Motor Company, spent nearly three weeks in a Tokyo jail after being arrested on suspicion of importing the painkiller oxycodone.