Japan Post chief offers to punish self, not quit

Japan Post Holdings Co. President Yoshifumi Nishikawa offered Thursday to discipline himself over scandals, including the company’s aborted sale of the Kampo no Yado nationwide resort inn network, but suggested he intends to remain at the helm.

He made the offer at a Lower House committee session after Kunio Hatoyama’s resignation last week as internal affairs and communications minister over his high-profile dispute with Nishikawa.

Hatoyama’s resignation came as Prime Minister Taro Aso chose to endorse Nishikawa’s reappointment as Japan Post head despite Hatoyama’s strong opposition.

“I have made some mistakes and regret them,” Nishikawa said. “But my duty is to solidify the privatization of Japan Post and promote necessary reforms.”

Nishikawa is expected to specify the disciplinary measure when he submits Japan Post’s business improvement report to the Internal Affairs and Communications Ministry early next week.

Tsutomu Sato, who succeeded Hatoyama as internal affairs minister, told the committee he will consult with the finance minister and the chief Cabinet secretary on how Nishikawa should be treated after checking the report and asking Aso to decide Nishikawa’s treatment.

Japan Post will submit the report in response to the internal affairs ministry’s business improvement order issued in April, following the aborted sales contract for the Kampo no Yado resort inn network. Japan Post had tried to sell the inns, allegedly at fire-sale prices, to Orix Corp., whose chief was among the architects of the postal system privatization. Hatoyama intervened and the sale was scrubbed.

The planned sale was a major factor behind the dispute between Hatoyama and Nishikawa over the management of the Japan Post group.