Kansai Electric Chairman Resigns over Gift Scandal
Newsfrom JapanEconomy Society
Osaka, Oct. 9 (Jiji Press)--The board of Kansai Electric Power Co. <9503>, at an extraordinary meeting on Wednesday, approved the resignation of Chairman Makoto Yagi over a high-profile gift-receiving scandal involving 20 executives including Yagi and President Shigeki Iwane.
Yagi's resignation, effective on the same day, comes amid mounting criticism of the scandal-hit power utility, which mainly serves the Kansai region in western Japan. After the scandal came to light last month, the 69-year-old chairman initially expressed his intention to stay in his post.
Yagi is also likely to resign as vice chairman of the Kansai Economic Federation. He was viewed as the possible next chairman of the group, reflecting expectations for Kansai Electric's financial contributions to World Expo 2025 to be held in the region.
Executive Vice President Ikuo Morinaka, who heads the company's nuclear business headquarters, will also step down.
Iwane, 66, will step down as Kansai Electric president on the day when a third-party investigation panel submits a report on the scandal. He is also seen quitting the chairman post at the Federation of Electric Power Companies of Japan.
[Copyright The Jiji Press, Ltd.]