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Nishimatsu Construction Co. held about ¥1 billion in slush funds 10 years ago and an ex-chairman who was president at the time may have known of their existence, a company source said Thursday.

Tokyo prosecutors questioned the 79-year-old former chairman of the major general contractor as a witness and asked him to explain how the funds were created, but he appears to have denied any involvement, investigative sources said.

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