Kansai Electric to Ban Employees from Accepting Gifts
Osaka, Oct. 29 (Jiji Press)--Kansai Electric Power Co. <9503> will ban its employees from accepting gifts from clients in light of a high-profile scandal in which executives received lavish gifts from a former official in a town hosting a nuclear plant, it was learned Tuesday.
The company currently does not have clear rules on receiving "chugen" and "seibo" seasonal gifts in its compliance manual. It will draw up rules on gifts and employees subject to the ban, reflecting the results of an investigation carried out by a third-party committee looking into the scandal,informed sources said.
According to an in-house investigation, 20 executives of the company, including former Chairman Makoto Yagi and President Shigeki Iwane, received cash and goods worth a total of some 320 million yen. The gifts were from Eiji Moriyama, former deputy mayor of the western Japan town of Takahama, Fukui Prefecture, which hosts the company's Takahama nuclear plant.
In late October, Iwane told senior company officials to refuse all seasonal gifts and presents to celebrate promotions, according to the sources.
The in-house investigation revealed that the management of and return of gifts were left up to individual executives, calling into question the lack of corporate governance at Kansai Electric.
[Copyright The Jiji Press, Ltd.]