Kansai Elec Auditors Aware of Gift Scandal from While Ago

Economy

Osaka, Oct. 4 (Jiji Press)--Kansai Electric Power Co. <9503> auditors were aware from a while ago that many executives had received money and goods from an influential person in a nuclear plant host town, it was learned Friday.

Kansai Electric did not disclose details of the scandal until Sept. 27 this year. The problem had not been reported to the board of directors or the industry ministry, which supervises power companies.

The auditors came to know of the scandal after Kansai Electric drew up a report of its internal probe into the scandal in September last year.

The scandal remained undisclosed after the auditors became aware of it. This shows that the company's corporate governance system did not work properly.

The report said that 20 executives, including President Shigeki Iwane and Chairman Makoto Yagi, received 320 million yen's worth of money and goods from the late Eiji Moriyama, former deputy mayor of the town of Takahama, Fukui Prefecture, central Japan, which hosts the company's Takahama nuclear plant.

[Copyright The Jiji Press, Ltd.]

Jiji Press