Minister orders Japan Post to report on past property sales

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TOKYO, March 3 Kyodo -
Internal Affairs and Communications Minister Kunio Hatoyama said Tuesday that
he has ordered Japan Post Holdings Co. to submit a report detailing all the
postal system's property sales before its privatization commenced in October
2007.
The order came after opposition parties in the Diet criticized some of the
deals for very low successful bid prices and subsequent resales of properties
by buyers.
Hatoyama, who is legally authorized to issue such an order, told a news
conference that Japan Post will have to submit the report by March 17.
Last month, Japan Post cancelled a controversial contract with leasing company
Orix Corp. for the sale of a nationwide resort inn network that the postal
system developed for postal insurance clients, after Hatoyama cast doubt over
the fairness of the bidding process for the contract.
Hatoyama has also urged Japan Post to reconsider a plan to redevelop the site
of the 78-year-old Tokyo Central Post Office for a modern high-rise building,
claiming the old building in front of East Japan Railway Co.'s Tokyo Station
could be a valuable cultural property.
But Japan Post President Yoshifumi Nishikawa on Tuesday indicated that he would
not postpone or suspend demolition of the building, which has already
commenced. ''At present, we are not at a stage to discuss whether to postpone
the plan,'' he told a press conference.
''We explained the plan to the Ministry of Internal Affairs and Communications
for nearly two years and secured the understanding of Hatoyama's predecessor,''
Nishikawa said. ''All we can do is make further efforts to secure his
understanding.''
Nishikawa also underlined his intention to remain as head of Japan Post despite
a series of disputes with Hatoyama. ''I have no reason to resign now,'' he
said.
==Kyodo
2009-03-03 22:30:04