Japanese convenience chain Lawson Inc has announced changes to its business practices, after a “misappropriation” of JPY14.4bn (US$4.7m) by two company directors in its Lawson Entermedia unit.

The Japanese retailer will strengthen its payment system monitoring and has established committees in all Lawson companies to oversee internal controls.

“We offer our sincerest apologies,” Lawson Inc said. “The Lawson Group as a whole will enforce risk management in order to prevent such an incident from recurring.”

The move follows recommendations made in a final report of an external investigative committee probing the scandal.

Today (14 April), Lawson reported an expected slump in annual earnings due to the Entermedia affair.