Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Former Nomura president arrested

Friday 30 May 1997 18:02 EDT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

The Nomura scandal took a further twist yesterday when Tokyo prosecutors arrested Hideo Sakamaki, who resigned as the broking company's president a couple of months ago, as part of the investigation of payoffs to a racketeer.

Mr Sakamaki, 61, was brought in for questioning about 49.7m (pounds 263,000) of hush money that Nomura allegedly paid to Ryuichi Koike, a reputed sokaiya, or corporate blackmailer. Hiroshi Mitsuzuka, Japan's finance minister, said. "The fact that the head [of Nomura] was suspected and arrested is very grave."

Forty investigators also raided Nomura's headquarters in Tokyo for the third time since Japan's biggest financial scandal in five years broke. The arrest is the latest sign that authorities doubt Nomura's explanation that only three lower-ranking employees knew about the hush money.

Asked if top executives knew of the payoffs, Junichi Ujiie, the new president, said: "I don't have the information to judge for myself at this time."

Mr Ujiie said he would now ask Mr Sakamaki to resign as an adviser to the brokerage, ending 39 years at the company. Police have not yet charged Mr Sakamaki.

Nomura suffered further financial fallout from the affair yesterday when six of the nine main Japanese electric power companies excluded it from underwriting their bond issues.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in