Panel Recommends Indictment Of Former Kansai Electric Executives
A prosecution inquest panel has concluded that former executives of Kansai Electric Power Company should be indicted over issues related to executive salary compensation and other misconduct.
The latest decision by the panel made up of randomly chosen citizens was disclosed on Monday.
Former Kansai Electric executives, including past chairman Yagi Makoto and former president Iwane Shigeki received cash and gifts from a former deputy mayor of Takahama Town, Fukui Prefecture.
A civic group accused them of commissioning construction work at padded cost to firms affiliated with the former deputy mayor, causing the utility to incur losses.
The company was also found to have compensated executives for extra taxes they paid after they amended the amount of income to tax authorities to include money received.
The management also secretly compensated executives when their salaries were reduced due to poor business results.
The Osaka District Public Prosecutors Office in November last year decided not to bring charges against nine former executives, citing a lack of evidence.
The civic group filed for an inquest panel review of the decision two months later.
The panel concluded that both Yagi and former senior adviser Mori Shosuke should be indicted over the compensation of the executives' salaries.
It also said Yagi, Mori and Iwane should be indicted for their involvement in compensating executives for the extra taxes they paid.
The panel also said that the prosecutors' decision not to file indictments for the remaining six former executives and over the case involving the receiving of cash and gifts was unjust.
Prosecutors will reinvestigate the cases and decide whether or not to indict.