Kobe Steel scandal cascades
The scandal engulfing Kobe Steel deepened Wednesday as the steelmaker said it may have falsified data about two more products, triggering a further collapse in its shares and intensifying concern that compromised material found its way into cars, trains and aircraft.
After admitting Sunday that it provided false information about the strength and durability of some aluminum and copper, Japan’s third-largest steel producer said data about iron ore powder and another product may also have been faked. Shares plunged 18 percent in Tokyo, with $1.6 billion wiped off the company’s market value since the revelations were made.
As the affair reverberates across markets, it’s a further blow to the integrity of Japanese manufacturers after a string of industrial scandals that has destroyed shareholder value, enraged consumers and incurred the wrath of regulators. Kobe Steel customers from Toyota to Subaru are scrambling to determine if they used the suspect materials and whether safety has been compromised.
As the scandal mushrooms, Japan’s government has weighed in. Deputy Chief Cabinet Secretary Kotaro Nogami said the faked data undermined the basis of fair trade, calling it “inappropriate.” Kobe Steel Chief Executive Officer Hiroya Kawasaki didn’t respond to requests for comment.
Kim Jong Nam’s death
SHAHALAM, Malaysia — A security camera video showing the estranged half brother of North Korea’s leader being attacked at a Malaysian airport and the two suspects hurrying away afterward was presented at their murder trial on Wednesday.
The video shows Kim Jong Nam arriving at the departure hall at the Kuala Lumpur international airport on Feb. 13 and moving to a check-in area. A woman identified in court as Vietnamese suspect Doan Thi Huong approaches Kim and clasps both hands on his face from behind before fleeing.
The second suspect, Indonesian Siti Aisyah, can’t be seen during the alleged attack but police officer Wan Azirul Nizam Che Wan Aziz testified that he identified her as a person seen running away in a different direction.
Russian military
Russian President Vladimir Putin has moved to legalize the military’s use of foreign volunteers in overseas operations, a new step in the country’s increasing engagement in wars abroad.
A decree published Monday — though still not ratified by Parliament — would allow foreign nationals to serve in what the law calls “counterterrorism and peacekeeping missions,” including in Syria, where increasing numbers of Russian service members are currently stationed.
“The timing of the change is quite telling,” said Alexey Khlebnikov, an analyst with the Russian International Affairs Council. “Russia’s only military operation abroad is in Syria, and only contractors [volunteers as opposed to conscripts] are serving there. This amendment provides regulation for the foreign nationals who participate in Russia’s Syria campaign.”
Also in the world ...
U.N. peacekeepers allegedly drugged and raped a teenage girl in the Central African Republic, Amnesty International said on Wednesday. ... Russian Prime Minister Dmitry Medvedev has signed a string of energy, military and other deals with Morocco during a North Africa tour; deals covered customs, agriculture, the military and culture.