JULY 1, 2003
Mugen under investigation
The Japanese newsagency KYODO NEWS is reporting that Mugen is to be investigated for tax evasion. The investigators seem to think that Mugen evaded $5m of corporation taxes by hiding money in a company called MG Estate, listed as leasing bills and other transactions which they believe were fictitious.
The investigation relates to transactions between 1998 and 2000, during which period Mugen was supplying F1 engines to Prost Grand Prix and Jordan. It is not however clear whether or not the money involved is in any way related to F1.
Mugen is owned and run by Hirotoshi Honda, the eldest son of Soichiro Honda, the man who founded the Honda Motor Company. It has operated since the early 1970s preparing competition engines for Honda, often with unofficial help from the main Honda firm.
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