Japan Post Holdings Co. President Yoshifumi Nishikawa submitted business improvement plans to the government Wednesday that include a pledge to notify local governments before selling off real estate properties in their area.
Japan Post will also set up a management advisory committee including third-party experts whose approval will be needed for any Japan Post property sales with a book value of ¥200 million or more.
The improvement plan was ordered after former internal affairs minister Kunio Hatoyama refused to approve a suspicious property sale pushed by Nishikawa due to concerns over an apparent conflict of interest. The high-profile battle led to Hatoyama's resignation this month.
Japan Post will also set a target price and lower price limit when it invites a bid for real estate properties, using appraisal values set by a third party and other elements, the plan says.
Tsutomu Sato, the new minister of internal affairs and communications, which oversees Japan Post, accepted the plans and said he intends to approve Nishikawa's reappointment as head of the government-owned postal behemoth, which is in the midst of being privatized.
Japan Post said it will implement the measures within a year and report on the process every three months.
Hatoyama had demanded Nishikawa's ouster, claiming Japan Post attempted to sell off its Kampo no Yado nationwide resort inn network at unreasonably low prices and that its auction process was unclear. Hatoyama resigned June 12.