Japanese Govt seeks resignation of entire TEPCO board in exchange for funds, Mainichi Daily News says

TOKYO (TR) – The Japanese government will demand the resignation of the entire Tokyo Electric Power Company board at its next shareholder meeting as a condition for the infusion of 1 trillion yen in public funds to help keep the troubled utility solvent, Japan’s Mainichi Daily News said, citing government officials.

The government says TEPCO’s board of directors needs to step down to take responsibility for the nuclear crisis at its damaged Fukushima Daiichi power plant caused by the March 11 earthquake and tsunami, according to the paper. The plan also calls for TEPCO Chairman Tsunehisa Katsumata, who was already scheduled to step down, to forgo his retirement allowance, the Mainichi said.

TEPCO and the government are at odds over how much say lawmakers will have over the utility’s management after the massive bailout. TEPCO is seeking to remain a private entity.

Japan’s Economy, Trade and Industry Minister Yukio Edano deemed the resignations necessary in order to avoid the impression the infusion of government funds is just another bailout, the government officials said, according to the Mainichi.

Source: Mainichi Daily News

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