Ex-Nishimatsu president arrested over slush fund scandal

TOKYO, Jan. 20 Kyodo -
Tokyo prosecutors arrested the former president of Nishimatsu Construction Co.
on Tuesday over a 70-million-yen slush fund scandal involving the Tokyo-based
major construction contractor.
With the arrest of Mikio Kunisawa, the prosecutors are expected to probe the
company's use of slush funds totaling about 1 billion yen.
The arrest came after the Tokyo District Public Prosecutors Office arrested
Keiji Fujimaki, 68, a former Nishimatsu vice president, and three others last
Wednesday.
Kunisawa, 70, is suspected of instructing Fujimaki and the others to bring a
total of 70 million yen into Japan from Hong Kong and other overseas locations
without reporting it to customs authorities on five occasions between February
2006 and August 2007, in violation of the foreign exchange and foreign trade
control law, according to the prosecutors.
Kunisawa, who had assumed the post of company president in June 2003, stepped
down from his post on Tuesday, according to the company.
Vice President Tadashi Ishibashi, 69, has replaced Kunisawa, the company said.
He assumed the No. 2 post in June 2003.
It is alleged that about 100 million yen has been brought in from abroad since
October 2005, and the prosecutors established a criminal case against Fujimaki
and the three others regarding the 70 million yen, as the statute of
limitations has already expired for the remaining 30 million yen.
The three are Kazuhiko Takahara, 63, former deputy head of Nishimatsu's
overseas business department, Yoshinobu Murata, 55, deputy head of Nishimatsu's
overseas operations, and Takashi Utsunomiya, 67, former president of Nishimatsu
subsidiary Shoei Real Estate Co.
The prosecutors are investigating how the company has used the large amount of
slush funds, they said.
==Kyodo