Chairman of major Japanese publisher Kadokawa indicted over Olympics bribery

TOKYO -- The chairman of major Japanese publisher Kadokawa Corp. was indicted by prosecutors on Tuesday on suspicion of bribing a former Tokyo Olympic executive, with the latest revelation further tarnishing the reputation of last year's Summer Games.

Tsuguhiko Kadokawa, who was arrested last month, is alleged to have paid 69 million yen (about $477,000) in bribes to Haruyuki Takahashi, 78, an ex-Tokyo Olympic executive, in return for the publisher being picked as one of the Games' sponsors.

An advisor to Kadokawa and an employee of the publisher have also been indicted on suspicion of conspiring with Kadokawa, according to the Tokyo prosecutors' special investigation squad.

Sources close to the matter said Kadokawa and those colluding with him funneled money through the publisher's bank account to a consulting firm linked to a former colleague of Takahashi who also used to work for advertising giant Dentsu Inc.

Kadokawa and his accomplices in return for the illicit funds allegedly asked Takahashi to help the publisher secure a spot as a sponsor of the Tokyo Games, with the sponsorship fee limited and the contractual process expedited.

Takahashi has already been arrested on suspicion of receiving bribes from the Kadokawa camp as the graft scandal continues to widen, sullying the reputation of the Tokyo Games, the start of which was delayed by a year due to the global COVID-19 pandemic.

Kadokawa, as a result of the bribes, succeeded in becoming an "official supporter" of the Games in the books and magazines publishing services sponsorship category in April 2019, informed sources said.

Along with the disgraced publisher, business suit retailer Aoki Holdings Inc. and Daiko Advertising Inc. are also alleged to have paid significant amounts of money to secure sponsorship status.

Takahashi has been charged with accepting some 51 million yen (about $353,000) in kickbacks from Aoki and around 15 million (about $103,700) in bribes from Daiko to become sponsors of the Games, sources close to the matter said.