Auditors at Kansai Electric Power Co. were aware that officials had received improper gifts even before a general shareholders meeting in June, and had raised questions on how management had dealt with the issue, sources close to the matter said Thursday.
The latest revelation has brought to light the auditors' inadequacy, having failed to publicize the issue and perpetuated the cover-up, despite their responsibility to monitor management.
The power company disclosed Wednesday that 20 officials had received about ¥320 million worth of gifts since 2006 from Eiji Moriyama, the late former deputy mayor of Takahama. Moriyama served as an adviser to a Kansai Electric subsidiary for more than 30 years before his death at age 90 in March.