Nihon University executive suspected of receiving part of embezzled funds

A Nihon University board member is believed to have received tens of millions of yen out of some 200 million yen allegedly diverted from the university in a possible breach of trust case, said Wednesday from investigative sources.

The Tokyo District Attorney’s Office’s special investigative team is now believed to be in the final stages of its investigation into the case as they question the 64-year-old board member.

Nihon University commissioned a Tokyo-based company to undertake design work for a reconstruction project of its former Itabashi hospital in the Itabashi district of the Japanese capital for some 2.4 billion yen last year, said sources familiar with the matter.

The board member in question is believed to have caused financial harm to Nihon University by diverting around 200 million yen from the educational institution to a consultancy company based in Tokyo’s Minato district, in which a former president of a medical group has invested, as part of the design contract.

Nihon University Enterprise Co. – established as a wholly owned unit of the university in the Setagaya district of Tokyo to be responsible for procurement of goods and management of facilities – was in charge of the selection of a design company for the reconstruction project and supported the design work.

The 64-year-old academic executive was also a member of the board of directors of Nihon University Enterprise and led negotiations with the design company.

During the summer of last year, Nihon University paid the design company about 700 million yen as an advance. The board director asked an executive at the design firm to send some 200 million yen to one of the consulting firm’s accounts.

Later, the director of the board was said to have received a total of several tens of millions of yen from a company linked to the medical group through several companies, according to the investigative sources.

Since September 8, the Special Squad has searched for related locations to clarify cash flows.

He seized materials from places such as Nihon University Enterprise, the university headquarters in Tokyo’s Chiyoda district, and the home of Hidetoshi Tanaka, the 74-year-old president of the university.

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