The president of Chiyoda Mutual Life Insurance Co. in 1992 pushed through loans to a financially troubled golf course developer that eventually went bankrupt, resulting in a loss of 14.7 billion yen to the insurer, sources close to the rehabilitation process of the failed insurer said Saturday.
An investigative committee set up by Chiyoda to look into former executives' responsibility for sloppy management, which damaged the firm's financial health and eventually led to its collapse in October, found that then President Yasutaro Kanzaki got the insurer to continue loans to Tokyo Zaishi Golf Club, despite objections from other members of the board.
The developer went bankrupt four years later, forcing Chiyoda to give up claims on some 12.7 billion yen in loans and to provide 2 billion yen to start another golf course development project, the sources said.