In reversal, top Kansai Elec execs to resign over graft scandal -media

Credit: REUTERS/Toru Hanai

The chairman of Kansai Electric Power Co has decided to resign, media reported on Wednesday, in a reversal of his stated intention to stay just a week ago amid a graft scandal that has rocked public trust in Japan's second-largest utility.

TOKYO, Oct 9 (Reuters) - The chairman of Kansai Electric Power Co 9503.T has decided to resign, media reported on Wednesday, in a reversal of his stated intention to stay just a week ago amid a graft scandal that has rocked public trust in Japan's second-largest utility.

Chairman and former president Makoto Yagi has informed several people at Kansai Electric of his intention to step down due to growing criticism from the government, local authorities, and the public, the Asahi newspaper and others reported.

President Shigeki Iwane is also expected to resign at a later date, after the conclusion of a third-party investigation into the scandal, the Nikkei business daily reported. Yagi's resignation is likely to be discussed at a board meeting on Wednesday, the Nikkei said.

Kansai Electric could not immediately be reached for comment by Reuters outside office hours.

The two executives had told a news conference last week that they would not resign after Iwane said he and 19 other company employees had received payments and gifts worth 320 million yen ($3 million) from the late deputy mayor of Takahama, where the company has a nuclear power station.

An internal Kansai Electric investigation had found the then deputy mayor, Eiji Moriyama, exerted influence over local government officials and sought to influence them to support the local economy and use local businesses as suppliers.

The payments were disclosed after the matter was raised by the local tax bureau.

($1 = 106.9700 yen)

Scandal-hit head of Japan's Kansai Electric has no plans to resign

(Reporting by Chang-Ran Kim; Editing by Christopher Cushing)

((ran.kim@thomsonreuters.com; +81-3-4563-2740;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More