Suntory Holdings Chairman and CEO Takeshi Niinami has resigned from his post after being questioned by police over the purchase of supplements that are suspected to be illegal in Japan, a fact that he was unaware of, the company said Tuesday.
The Fukuoka Prefectural Police are investigating the case against Niinami, one of the most vocal business leaders in Japan who has also served as a member of a government economy panel.
“We apologize from the bottom of our hearts for causing trouble over the incident,” Suntory Holdings President Nobuhiro Torii said in a hastily convened news conference in Tokyo on Tuesday afternoon.
The fact that he is a subject of an investigation makes him unfit to remain as chairman, Torii said.
Torii said that Niinami informed Suntory on Aug. 22 that he was under police investigation.
When an external attorney questioned Niinami, he explained that he had purchased supplements “with the understanding that they were legal.”
Suntory declined to reveal what kind of supplements they were, citing ongoing police investigations. The legality of the supplements he allegedly purchased is currently being probed, Torii said.
Suntory has, however, decided that Niinami’s conduct, which showed a lack of due care with regard to the supplements, made him unfit for the high-ranking position he held.
After internal discussions, Niinami tendered his resignation, which was accepted by the company on Monday.
Torii nonetheless praised Niinami over his management skills and for his service of more than a decade at Suntory.
“He was a bold, decisive and capable business leader,” he said. “For the 10 years he was with the company, he significantly expanded the company’s sales and profitability. That is an undeniable fact.”
According to investigators, Niinami became a possible target for investigation after police arrested another man in July over illegal drugs. Police sources suspect that he purchased supplements that contain tetrahydrocannabinol, commonly known as THC, a cannabinoid found in cannabis that is illegal in Japan when it exceeds a certain amount.
He told investigators that a female acquaintance ordered the supplements and had them sent to him, denying any involvement. Investigators have yet to locate the supplements in question, and Niinami has been subjected to a urine test for THC, which came back negative.
Suntory Vice President Kenji Yamada said Niinami has expressed his regrets over his inability to stay on in his role as the company’s chairman.
When asked how the company would respond if the police investigation found no wrongdoing on Niinami's part, Yamada said the decision was made regardless of whether he is ultimately found guilty or not.
"This decision was made in light of the seriousness of the issue, which concerns his qualification to be the leader of a company that deals in supplements. Regardless of the outcome of the investigation, this matter will remain unchanged," said Yamada.
Outside Suntory, Niinami also serves as head of the Japan Association of Corporate Executives, a business lobby better known as Keizai Doyukai.
Niinami became president of major convenience store Lawson in 2002 before he became president of Suntory Holdings in 2014. He took on the role of company chairman in March this year.
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