Inageya to Cut Pres. Compensation by 30 Pct over Kickbacks

Economy

Tokyo, May 7 (Jiji Press)--Supermarket chain operator Inageya Co. <8182> said Tuesday it will reduce the compensation paid to its president, Naoto Naruse, by 30 pct for three months in response to a kickback scheme found in its product-purchasing sector.

According to the company, which operates supermarkets mainly in the Tokyo metropolitan area, the pay cut will be implemented to clarify Naruse's responsibility for the malpractice.

Inageya dismissed in February a then executive officer and a then division chief who were involved in the misconduct. It plans to sue them for damages.

According to a special investigative committee under the company, the two purchased products from a client at inflated prices and returned the difference between the paid prices and the products' usual prices to the client from April 2015 to November last year.

The money was then funneled to the two and used for private dining and entertainment purposes.

[Copyright The Jiji Press, Ltd.]

Jiji Press