Japan Post officially gives up sales of 'Kampo' inns in FY 2008+

TOKYO, March 16 Kyodo -
Japan Post Holdings Co. officially gave up a plan to sell its nationwide
''Kampo-no-yado'' inn network in fiscal 2008 as the internal affairs ministry
on Monday approved its application withdrawing its planned sales by the March
31 end of the current fiscal year.

The Ministry of Internal Affairs and Communications said it approved Japan
Post's change in business plans after the entity canceled a contract for the
sales of some 70 Kampo-no-yado inns and nine related housing facilities in the
Tokyo area to leasing firm Orix Corp.
Orix won the contract for lump-sum purchase of the Kampo-no-yado inn network
and the housing facilities in Tokyo through competitive bidding, but the two
sides canceled the contract last month after communications minister Kunio
Hatoyama cast doubt over the fairness of the bidding process and the price.
Japan Post set up a third-party panel of lawyers and other experts last month
to review the transfer of its properties.
Meanwhile, the ministry also said it issued a business-improvement order to
Japan Post, the third in fiscal 2008, in connection with a case in which it
failed to deliver 50 parcels of vegetables and other items, after they were
found left in a container at Naha port in Okinawa Prefecture earlier this
month.
Unless Japan Post improves its business as ordered, the ministry will not
authorize new businesses Japan Post wishes to begin in the future, ministry
officials said.
==Kyodo