Kansai Electric Power Co. (KEPCO) announced March 30 a ‘business improvement plan’, after indulging in a colossal racketeering in which company’s top executives had received a massive amount of cash and gifts in relation to construction and operation of nuclear power stations. But it will be unworkable if the power plants remain the same as they are the very source of corruption.

IMPROVEMENT – IMPOSSIBLE IF NUCLEAR POWER PLANTS REMAIN INTACT

News coverage by Kyodo

The company’s top mangers had received a tremendous amount of cash and gorgeous gifts from a former deputy mayor (who passed away) of the Takahama-cho, Fukui Prefecture, which was disclosed in September last year by the investigative team of Kyodo News Agency. Reception of money and offerings was clarified in the process of taxation probe held in January 2018. A panel was established inside KEPCO to look into fraudulence, and it compiled an internal report in September 2018 to release the outcomes in October 2019.

Several times of whistle-blowing had been made before the scandal emerged to the surface, by which information that only KEPCO’s people could have access to was open. The data were previously sent to relevant people, mass media, taxation offices and the Department of Special Investigation of the Osaka Prosecutors’ Office, but reaction was not impressive.

The episode became a scandal, appearing as a money circulation affair linked to nuclear power plants, when the Kyodo’s team revealed facts after its independent search for truths. Giant waves of fury heaved up to evoke an immense scale of news coverage. Kyodo was not provided with records by whistle blowers.

KEPCO held a news meeting on the following day, September 27, of the Kyodo’s delivery, but the company did not give even names of the executives who had received cash and gifts. The meeting ended in complication. In the following press meeting of October 2 the internal report was made open to explain content, which surprised people. But the KEPCO’s inherent suppression astounded them more.

Filling up salaries of top executives

Later Third-Party Panel released a final report on March 14, 2020, which tells that 75 managers of the company were paid an amount of 360 million Yen in the scheme. One of the facts says that the retired, eighteen top managers were paid back the amount of 260 million Yen as director’s remuneration was reduced in exchange of surges of electricity rate in the decade of 2010. No filling-up was made to ordinary employees who had received a decreased sum of salary.

As for filling-up of compensation of directors, the Association to Accuse KEPCO of Illicit Nuke Money Dealing will file a criminal complaint, charging former Chairman Yagi Makoto with additional crimes of business embezzlement and breach of trust.

The improvement plan announced on March 30 sets forth to intensify authority of external directors, assigning former Chairman of the Keidanren, the Japan Business Federation, Mr. Sakakibara Sadayuki, as KEPCO’s Chairman, who will be inaugurated in the shareholders’ meeting to be held in June.

Mr. Sakakibara told, however, in the press conference held in the KEPCO’s headquarters in Nakanoshima, Osaka, on March 30 that it is necessary to reactivate the suspended nuclear stations to an extent of 20-22% in order to meet the nation’s whole demand of electricity.

The corruption, however, took place in linkage with construction and operation of nuclear plants. If the plants are left intact, it is impossible to prevent reoccurrence of fraud and revive KEPCO.

April 14, 2020