• Kyodo

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Duskin Co. filed a suit with the Osaka District Court on Wednesday demanding three of its former executives pay 189 million yen in damages for misuse of the firm’s money.

The Osaka-based renter of cleaning equipment claimed former Chairman Koji Chiba, 63, and two others damaged the firm by setting up dummy business contracts involving giveaway items at its Mister Donut chain and giving a total 185 million yen between 1999 and 2001 to an advertising company with which Chiba had close personal ties.

The two others are former executive director Shuichi Shibahara, 62, and former director Seisuke Sugano, 54.

In 1997, Chiba also spent 4 million yen in company funds to cover the travel costs of 36 of his junior high school alumni when they joined a Duskin study trip to Australia, according to the lawsuit.

In a statement released after the suit was filed, Duskin again apologized for the former executives’ suspected wrongdoing, which it described as “extremely regrettable.” Chiba and Shibahara are both currently being tried for breach of trust.

Chiba pleaded not guilty when the trial began.

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