Tokyo prosecutors on Tuesday arrested Mikio Kunisawa, 70, the former president of Nishimatsu Construction Co., over a ¥70 million slush fund scandal involving the Tokyo-based contractor.
The Tokyo District Public Prosecutor's Office arrested former Nishimatsu Vice President Keiji Fujimaki, 68, and three others Jan. 14.
Kunisawa is suspected of instructing Fujimaki and the others to bring a total of ¥70 million into Japan from Hong Kong and other overseas locations without reporting it to customs authorities on five occasions between February 2006 and August 2007.
That would violate the foreign exchange and foreign trade control law, the prosecutors said.
Kunisawa, who became president in June 2003, stepped down from his post Tuesday, according to the company.
Vice President Tadashi Ishibashi, 69, replaced Kunisawa, the company said. He assumed the No. 2 post in June 2003.
Although it is believed that about ¥100 million was brought from abroad since October 2005, the prosecutors established a criminal case against Fujimaki and the three over the ¥70 million because the statute of limitations has expired for the remaining ¥30 million.
The three are Kazuhiko Takahara, 63, a former deputy head of Nishimatsu's overseas business department, Yoshinobu Murata, 55, a deputy head of Nishimatsu's overseas operations, and Takashi Utsunomiya, 67, a former president of Nishimatsu subsidiary Shoei Real Estate Co.
The prosecutors said they are investigating how the company used the slush funds.
They began suspecting Kunisawa of involvement in the wrongdoing after Takahara told investigators he brought in the cash on orders from higher-ups.
Fujimaki is known to have once headed a department linked to two political organizations that provided donations to politicians, both in the ruling and opposition camps.
Kunisawa was Fujimaki's predecessor in the department, known as the control headquarters.
Thai authorities have said they will launch an investigation into a bribery case in Bangkok involving Nishimatsu.