MoF fries in "no pan shabu shabu"
In a case separate from the "no pan shabu habu affair", prosecutors have arrested Takehiko Isaka, a former senior MoF official.
Before parachuting into the post of officer in charge of finance of the Japan Highways Public Corporation, Isaka had been director-general of the MoF's mint bureau. In that capacity, Isaka is believed to have played a key role in the process by which underwriters were chosen for the Highway Corporation's dollar-denominated bond issues.
Prosecutors have indicted Isaka for bribery in connection with a September 1994 bond issue for $500 million in which Nomura Securities was co-lead manager. According to prosecutors, Isaka accepted the equivalent of ¥2.56 million in entertainment. The MoF said last month it would not provide for six months a government repayment guarantee for foreign bond issues underwritten by Nomura. It said it intends to take similar punitive action against Industrial Bank of Japan.
Isaka was re-arrested on February 9 in connection with similar charges stemming from bond issues in which Industrial Bank of Japan was co-manager. Kozo Umezu, director of IBJ's securities department was also arrested in connection with ¥1.5