Nishikawa's reappointment as head of Japan Post authorized+

TOKYO, June 29 Kyodo -
Yoshifumi Nishikawa was reappointed as president of government-owned Japan Post
Holdings Co. after a shareholders meeting Monday despite a series of scandals
including an aborted attempt to sell the Kampo-no-yado resort inn network.
After the general shareholders meeting, attended by a senior Finance Ministry
official on behalf of the government -- the sole shareholder -- internal
affairs minister Tsutomu Sato formally authorized Nishikawa's reappointment,
effectively ending the political turmoil over whether he should remain in the
post, which led to the resignation of Sato's predecessor Kunio Hatoyama.
The internal affairs and communications minister is responsible for overseeing
Japan's postal system, which is undergoing a 10-year privatization process that
started in the fall of 2007. The entity is still 100 percent owned by the
government.
''I take the reappointment very seriously,'' Nishikawa said after receiving a
letter of endorsement from Sato at the internal affairs ministry. ''I believe
that Japan Post needs to accelerate further the speed of reforms to drive
forward the privatization.''
While serving as internal affairs minister, Hatoyama had called for Nishikawa
to quit, saying that Japan Post attempted to sell off its Kampo-no-yado
nationwide resort inn network at unreasonably low prices and that its auction
process was unclear.
Hatoyama then resigned June 12, dealing an additional blow to Prime Minister
Taro Aso, who is suffering from faltering approval ratings.
Last week, Sato, Hatoyama's successor, expressed his intention to endorse
Nishikawa's appointment following the latter's offer to take a pay cut and to
improve Japan Post's corporate governance by establishing a management advisory
committee involving third-party experts and through other measures.
With the endorsement on Monday, Nishikawa, the former head of Sumitomo Mitsui
Financial Group Inc., was formally authorized to head Japan Post for a fifth
term, including the period when Japan Post was still a preparatory company for
its privatization process.
''We want Mr. Nishikawa to steadily implement the business improvement measures
and devote efforts to promoting the postal service privatization,'' Sato told
reporters.
At the general shareholders meeting, Japan Post also reported its financial
results for the year ended March 31 and proposed that other board members be
reappointed based on an expert panel recommendation in May. The agenda items
were approved at the meeting that ended in 20 minutes.
Japan Post has been under fire for a series of scandals.
Last year, it came up with a plan to sell dozens of Kampo-no-yado inns as part
of its business restructuring process. Late last year it chose leasing company
Orix Corp.'s real estate unit after competitive bidding and the price was
announced at 10.9 billion yen, compared with the purchase cost of around 240
billion yen.
Hatoyama then urged a review of the plan, arguing it was a done deal between
Japan Post and Orix before the bidding. The two companies later canceled the
deal.
In another case, a business improvement order was slapped on Japan Post Service
Co., a Japan Post unit, last December over its slack controls in connection
with the alleged abuse of a mail discount system for handicapped people.
Despite his reappointment, Nishikawa may not remain in his post for long as
Yukio Hatoyama, leader of the main opposition Democratic Party of Japan and the
older brother of Kunio Hatoyama, has said his party will push for Nishikawa to
step down if it takes power by defeating the ruling coalition at the next
general election.
Yukio Hatoyama sharply criticized the government Monday for allowing Nishikawa
to remain in his post, saying the decision goes against public sentiment.
''A company owned 100 percent by the government means its shareholders are the
people,'' the DPJ president said. ''(The government) should not make personnel
decisions that ignore the will of the people.''
A recent Kyodo News poll showed that support for Aso's Cabinet dropped after
Kunio Hatoyama resigned as internal affairs minister, with around
three-quarters of respondents saying Nishikawa should step down.
As for Japan Post's vacant chairman's position, which Sato has said will be
filled by someone from outside of the company, Nishikawa said he does not have
a specific person in mind to recommend, implying that he would not be actively
involved in the selection process.
Nishikawa said Japan Post intends to appoint a new chairman within three months.
==Kyodo