Kansai Electric Slammed by Shareholders over Gift Scandal

Economy

Osaka, June 25 (Jiji Press)--Kansai Electric Power Co. <9503> on Thursday met a flurry of criticism from its shareholders over a high-profile gift scandal, while trying to win their support for measures to strengthen its governance system.

At a general meeting held in the western Japan city of Osaka, shareholders of the power utility serving the Kansai western region, including Osaka Prefecture, condemned the company for its lax corporate culture that led to its failure to prevent the scandal.

At the start of the meeting, Kansai Electric President Takashi Morimoto said, "I deeply apologize for causing trouble and worries."

But one of the shareholders said, "The nuclear power business took priority over legal compliance, and nobody felt guilty about" the irregularities. Another sought the dismissal of Morimoto, who is among those targeted in a shareholder derivative suit over the gift scandal.

In the scandal, scores of Kansai Electric officials received money and goods from a former deputy mayor of the town of Takahama, Fukui Prefecture, central Japan, which hosts one of its nuclear power plants.

[Copyright The Jiji Press, Ltd.]

Jiji Press