National

4 arrested over China arms disposal projects

The Yomiuri Shimbun

The former president of a Tokyo-based major consultancy and three others were arrested Wednesday on suspicion of misappropriating 120 million yen in profits from government-commissioned projects to dispose of abandoned chemical weapons in China.

The Tokyo District Public Prosecutors Office suspects the four's alleged aggravated breach of trust inflicted 120 million yen of financial damage on the company in connection with projects to dismantle chemical weapons abandoned in China by the Imperial Japanese Army during World War II. Prosecutors suspect the firm also padded the bills concerning fees for the project.

Arrested were Tamio Araki, former president of Pacific Consultants International in Tama, Tokyo; Shota Morita, the company's former vice president; Masayoshi Taga, the company's project management department chief; and Yoshitaka Fukuda, an executive of a PCI affiliate.

PCI's holding company established Abandoned Chemical Weapons Disposal Corp. in Minato Ward, Tokyo, in March 2004, which won an exclusive discretionary contract to dispose of the abandoned weapons. The company consigned parts of the project's work to a joint venture including PCI.

According to prosecutors and other sources, Araki urged Morita and others to come up with ways to funnel 300 million yen to Pacific Program Management, at which Araki was serving as president, by taking advantage of the government project.
(Apr. 24, 2008)