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.
According to the company source, the off-the-book funds were systematically raised via the Tokyo-based builder's overseas operations about a decade ago and managed at its administrative headquarters.
This would count as a violation of the foreign-exchange and foreign trade law. Former Nishimatsu President Mikio Kunisawa, former Vice President Keiji Fujimaki, Takashi Utsunomiya, former president of Nishimatsu subsidiary Shoei Real Estate Co., and others are suspected to have been involved with the funds during that period.
Tokyo prosecutors arrested Kunisawa, 70, Fujimaki, 68, and Utsunomiya, 67, as well as Kazuhiko Takahara, former deputy head of Nishimatsu's overseas business department, and Yoshinobu Murata, deputy head of Nishimatsu's overseas operations.
Kunisawa is suspected of telling Fujimaki and the others to bring ¥100 million into Japan from Hong Kong and other places abroad without reporting it to customs authorities on five occasions between February 2006 and August 2007. Because of the statute of limitations, they only face charges on ¥70 million of the funds.