THE figurehead of one of the world’s biggest companies has stepped down in the wake of allegations by a south Essex whistleblower.

Tsuyoshi Kikukawa resigned as chairman of Olympus, the Japanese optical equipment manufacturer, yesterday after claims by former chief executive Michael Woodford.

Mr Woodford, 51, of Thorpe Bay, was sacked as chief executive of Olympus two weeks ago after clashing with other bosses.

He has since called for a fraud inquiry into claims the company made “improper payments” of more than $1.5billion to other companies.

The allegations have rocked Japan, with shares in the 92-year-old company falling through the floor.

The ripple effects of the allegations could also have an impact on almost 1,000 people who work at the company’s Southend-based medical subsidiary, KeyMed.

The company, based on the Temple Farm industrial estate, is wholly owned by Olympus.

The company’s global value has more than halved to £2.66billion as a result of the scandal.

Speaking yesterday, Mr Kikukawa said he was standing down to preserve confidence in Olympus’s management. However, he described Mr Woodford’s allegations as “aberrant” and “unforgivable” in an e-mail to staff. He accused Mr Woodford of deliberately trying to damage the company’s reputation.

But Mr Woodford dismissed the accusation, claiming: “Mr Kiku-kawa’s credibility is shot.

“He promoted me ten days before I submitted the report on the payments.

“This is a distraction from the main issue.”

Mr Woodford, who has lived in Southend for three decades, joined a handful of foreigners who have made it to the top of a Japanese company when he took over the top job at Olympus in April.

He had worked his way to the very top after starting at KeyMed in 1981, and became its managing director around ten years later.

He ploughed thousands of pounds into road safety projects in the town and supported hundreds of charities.

Mr Woodford said his suspicions were first aroused by the discovery of a payment of nearly $700million to an unknown company in the Cayman Islands for assisting in the takeover of another company.

He then raised questions about the expensive acquisition of another three companies, which appeared to have little to do with Olympus’s core business.

Both the UK’s Serious Fraud Office and the American FBI have now launched investigations into the claims.

No one from KeyMed was available for comment.