OSKAKA (TR) – A high-stakes trial involving former executives of Kansai Electric Power Co. (KEPCO) who allegedly pocketed massive amounts of cash, gold, and gifts concluded on Wednesday.
During the proceedings at the Osaka District Court, the defense claimed the defendants only accepted the bribes to ensure the survival of the company’s nuclear plants, reports Mainichi Broadcasting System (Sep. 10).
For decades dating back to the 1980s, KEPCO executives were showered with illicit gifts, including gold cups, wads of US dollar bills, and traditional Japanese gold coins known as koban.
Takahama Nuclear Power Plant
The bribes, totaling an estimated 370 million yen in value, were handed over by the late Eiji Moriyama, the former deputy mayor of the town of Takahama in Fukui Prefecture, which hosts the Takahama Nuclear Power Plant.
In exchange, the executives allegedly provided preferential treatment, funneling lucrative nuclear-related construction contracts to companies tied to Moriyama.
The deeply rooted collusion was finally exposed in 2019 when the Kanazawa Regional Taxation Bureau launched an investigation into a local construction firm. The ensuing scandal forced KEPCO’s top brass to resign in disgrace, leading the company and its shareholders to file a lawsuit seeking damages for the severe blow to the utility’s credibility.
Offer they couldn’t refuse
During the trial, the disgraced former management presented a dubious defense, arguing they were merely “holding onto” the valuables because they were unable to refuse Moriyama.
One former Takahama plant manager recalled being handed the loot directly over 20 years ago. “I received a suit once… and also koban,” he told reporters. “Two pieces. They were shaped like koban.”
Former KEPCO President Shigeki Iwane claimed the executives were terrified of angering the influential town official. In 2019, Iwane stated, “We were frightened by the ‘shadow’ of Moriyama that had persisted from the past.”
“Life or death”
During witness questioning in May, Iwane justified keeping the bribes a secret by citing the company’s financial crisis following the 2011 Great East Japan Earthquake. “KEPCO was in a life-or-death situation, and the only way to resolve it was the early restart of the nuclear plants,” Iwane said, claiming they had to avoid souring their relationship with Moriyama at all costs.
It was also revealed that the former management never reported the cash and gifts to the board of directors. Former Chairman Makoto Yagi testified in May that the board of auditors had decided the matter “did not fall under the obligation to report.”
Shareholders scoffed at the defense, pointing out that some of the gold and gifts were cashed in and only returned en masse after the tax probe began. They argue this proves the executives outright accepted the bribes rather than safely storing them, and that failing to report the matter to the board was a deliberate cover-up.
With all hearings now concluded, a verdict is scheduled to be handed down on March 3 of next year.
