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Kobe Steel Cooperates in Investigation of Improper Campaign Contributions
02/12/2009 - Kobe Steel says it will cooperate fully with judicial authorities regarding the investigation of improper local campaign contributions at its Kakogawa Works, Takasago Works, and Chofu Works.
Kobe Steel, Ltd. reported the discovery that its Kakogawa Works in Kakogawa, Hyogo Prefecture, Takasago Works in Takasago, Hyogo Prefecture, and Chofu Works in Shimonoseki, Yamaguchi Prefecture appear to have made improper payments for expenses for campaign groups under the category of donations. Such payments are prohibited under the Political Funds Control Law.
Kobe Steel expressed deep regret and apology for losing the trust of numerous parties, including people in the community, business partners, stockholders, and related authorities.
In the elections for city council members for Kakogawa, Takasago and Shimonoseki, and the election of Hyogo Prefecture council members, Kobe Steel undertook support activities through a number of campaign groups for assembly member candidates (who were Kobe Steel employees or former Kobe Steel employees) that were endorsed by the Kobe Steel labor union. Meanwhile, the Political Funds Control Law was revised in 1995 and also in 2000. Despite the tightened regulations for companies making donations to campaign groups, Kobe Steel's three facilities continued to assume part of the payment for some campaign expenses, such as office expenses and labor costs incurred in campaign group office work.
The internal investigation began in November 2008 during a tax audit. The three facilities had supported assembly candidates endorsed by Kobe Steel's labor union in local elections since 2001. In the eight elections since 2001, it is believed that a total of 27 million yen may have been donated in violation of the Political Funds Control Law.
The company reached a turning point in 2006 that was prompted by an air emissions problem at Kobe Steel's Kakogawa Works and Kobe Works. At that time, Kobe Steel strengthened its efforts to adhere to the laws and regulations. However, as this new case led to the company’s discovery of improper acts, Kobe Steel has decided that its President & CEO, Yasuo Inubushi, would step down at the end of March 2009, as would its Chairman, Koshi Mizukoshi.
Kobe Steel said that from now on, while receiving feedback from people employed outside the company, the company intends to implement preventive measures to restore trust. Kobe Steel also said that it will cooperate fully with the decision of the judicial authorities.
Kobe Steel expressed deep regret and apology for losing the trust of numerous parties, including people in the community, business partners, stockholders, and related authorities.
In the elections for city council members for Kakogawa, Takasago and Shimonoseki, and the election of Hyogo Prefecture council members, Kobe Steel undertook support activities through a number of campaign groups for assembly member candidates (who were Kobe Steel employees or former Kobe Steel employees) that were endorsed by the Kobe Steel labor union. Meanwhile, the Political Funds Control Law was revised in 1995 and also in 2000. Despite the tightened regulations for companies making donations to campaign groups, Kobe Steel's three facilities continued to assume part of the payment for some campaign expenses, such as office expenses and labor costs incurred in campaign group office work.
The internal investigation began in November 2008 during a tax audit. The three facilities had supported assembly candidates endorsed by Kobe Steel's labor union in local elections since 2001. In the eight elections since 2001, it is believed that a total of 27 million yen may have been donated in violation of the Political Funds Control Law.
The company reached a turning point in 2006 that was prompted by an air emissions problem at Kobe Steel's Kakogawa Works and Kobe Works. At that time, Kobe Steel strengthened its efforts to adhere to the laws and regulations. However, as this new case led to the company’s discovery of improper acts, Kobe Steel has decided that its President & CEO, Yasuo Inubushi, would step down at the end of March 2009, as would its Chairman, Koshi Mizukoshi.
Kobe Steel said that from now on, while receiving feedback from people employed outside the company, the company intends to implement preventive measures to restore trust. Kobe Steel also said that it will cooperate fully with the decision of the judicial authorities.
