Tokyo Electric Power Co. has admitted giving beer gift coupons to local and prefectural assembly members sympathetic to the construction and operation of nuclear plants.

The company is already at the center of a dispute over mishaps at its nuclear power plant in the neighboring villages of Kashiwazaki and Kariwa, in Niigata Prefecture.

The utility defended the gifts, saying the company was simply following the local custom of giving gifts to people who "one owes favors." Critics say the practice smacks of collusion between big business and politicians.

The provision of the gifts came to light at a town meeting in Kashiwazaki on Friday, when Tepco President Tsunehisa Katsumata apologized to the residents of Kashiwazaki and Kariwa for covering up safety inspection data. The public outcry over the scandal forced the firm to shut down all 17 of its reactors across Japan.