Olympus has sacked its boss over claims he bought illegal drugs.

German businessman Stefan Kaufmann, the Japanese manufacturing giant's second non- Japanese chief executive, took over in April last year.

But in a statement yesterday, a spokesman for the camera-maker said that after receiving an allegation that Kaufmann had bought illegal drugs, it launched an investigation.

The spokesman said: 'Based on the results of the investigation, the board of directors unanimously determined that [he] likely engaged in behaviours that were inconsistent with our global code of conduct, our core values and our corporate culture.'

The board asked for his resigna tion and Kaufmann, 56, agreed, the spokesman said.

With Olympus shares falling more than 5pc in Tokyo, the company apologised 'for the concern this has caused to our 'share holders, customers and all stakeholders'.

Details of the drugs that Kaufmann is alleged to have bought remain unclear.