Kansai Electric to Sue Ex-Execs over Gift Scandal

Economy

Osaka, June 12 (Jiji Press)--Kansai Electric Power Co. <9503> is set to sue former company executives for damages over a high-profile gift scandal, it was learned Friday.

The move comes after a committee comprising outside lawyers recognized in a report that five former executives bore legal responsibilities for the scandal, in which many Kansai Electric officials received cash and lavish gifts from an influential person.

The planned damages lawsuit will target all of the five--former President Shigeki Iwane, former Chairmen Makoto Yagi and Shosuke Mori, former Executive Vice President Hideki Toyomatsu and former board director Ryohei Shirai, according to informed sources.

Kansai Electric, based in the western Japan city of Osaka, will make an official decision early next week on the filing of the suit, the sources said.

The committee, led by former Supreme Court Justice Chiharu Saiguchi, concluded that the five failed to fulfil their duty of care as board members, causing damage of at least 1.3 billion yen to Kansai Electric. Its report was submitted to the company on Monday.

[Copyright The Jiji Press, Ltd.]

Jiji Press