Daio Paper Corp. said it will discipline 23 board members and officials at seven group companies for their roles in making massive illicit loans to former Chairman Mototaka Ikawa, who has been indicted for aggravated breach of trust.
The board members at group firms will be suspended for up to six days after being assigned back to the parent company. The others will be demoted and have their pay cut, all effective March 6, the nation's third-largest paper maker said Friday.
Daio Paper's in-house investigative committee said late last year that it found Ikawa had directed seven companies to transfer a total of ¥10.68 billion to bank accounts he controlled, and that the 23 people cooperated through such actions as approving remittances without following in-house procedures.