The city of Yamagata took administrative disciplinary action on Tuesday against a certified kodomoen kindergarten-nursery hybrid in the city, suspending new admission of children for a year from Nov. 1, after recognizing reported incidents of sexual abuse by a man in his 60s who heads the facility.
The facility is expected to close temporarily from November, according to the Yamagata Municipal Government.
The principal claims the allegations are groundless.
The municipal government said the man had been sexually abusing some children at the facility since last year, through actions such as suddenly pulling down a girl's diaper without any reason and touching several children's lower bodies through their clothes.
The authority also said the man had falsely reported the number of teachers at the facility, counting part-time staff as full-time, and illegally received more than ¥10 million in benefits as a result.
The principal admitted to the misreporting, saying he had made a false application by mistake.
The facility has notified the municipal government that it will temporarily halt operations from November because it can't secure enough day care teachers.
The municipal government contacted the parents of roughly 30 children enrolled at the facility and offered them information and advice on where the children can be transferred.
The city conducted special audits on the facility in July and August after a staff member reported the incidents to the municipal government in June.