Airport Business Scandal Related with Family of Politician

A company which runs Japan’s busiest airport announced that it had been providing inappropriate profit to a consultation firm in Tokyo. The firm is managed by a son of former Secretary General of the Liberal Democratic Party. The president of airport company could not quit benefiting the firm, being afraid of negative influence on their business. Scandals of family of political big name have been repeated in the past.

Special investigation committee of Japan Airport Terminal (JAT) released a report on a scandal of providing inappropriate profit to a consulting firm. According to the report, a subsidiary of JAT paid about 430 million yen between 2006 and 2016 to a firm for installing massage chairs in the lobby of airport terminal building. Tokyo Regional Taxation Bureau found in 2016 that the consulting firm did not actually supply any massage chair and recognized the payment as donation.

 

Nevertheless, JAT kept on sending commission to the firm thereafter through another company. The report found the commission was to evade tax, decided by the president of JAT. The president and chairman of JAT led the inappropriate provision of profit to the firm. They demanded the company that paid commission to give the firm other profit, such as for advertising or consultation of management.

 

The firm is run by the eldest son of former LDP Secretary General, Makoto Koga. Koga experienced Minister of Transport between 1996 and 1997 in Ryutaro Hashimoto Cabinet. It is likely that Koga had been keeping his influence to policy making for transport, including airlines or airports. The president of JAT commented to the investigation that he could not disconnect his relationship with Koga’s son, considering long-time connection with Koga.

 

The investigation committee concluded that it confirmed inappropriate trade with a specific person, recognizing significance of the case and demanding JAT necessary measures to regain confidence for the company. It also accused the leaders of their inappropriate governance that paralyzed the control of the company. The president and chairman decided to resign.

 

The case reminds of treat for officers of Ministry for Internal Affairs and Communications by a company in 2021, one of which board members was a son of then Prime Minister Yoshihide Suga. The company was advertising agency dealing with TV commercial. The ministry oversees TV business. Suga had been minister of the ministry. The son was a secretary of his father, when Suga was the minister.

 

The sons of Koga and Suga are in common in terms of taking advantage of their father’s political power for their own businesses. It is a serious problem, if private business or policy making in ministries has been distorted by some specific personal relationship based on political power.

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