TOKYO OLYMPICS CORRUPTION - PART 19

 Olympics corruption ADK president resigns, arrested on bribery charges, offered by himself

ADK Holdings, a major advertising company, announced on May 20 that its president, Shinichi Ueno, 68, who was arrested on suspicion of bribery by the Tokyo District Public Prosecutors' Special Investigation Department in the Olympic corruption case, will resign and promote Toshiya Oyama, 63, an executive officer of the company, to succeed him. Former President Ueno offered his resignation, and at the general meeting of shareholders on the 19th, a resolution was passed on the proposal to appoint Mr. Oyama as a director, and the board of directors on the same day approved Mr. Oyama's appointment as president.

ADK stated on the 19th day of the arrest of former President Ueno, "It is truly regrettable that this situation has occurred, and we sincerely apologize for the inconvenience and concern caused to everyone involved. We will fully cooperate with the investigation to resolve the case."

Former President Ueno was arrested for allegedly bribing approximately 14 million yen to Haruyuki Takahashi (78) = re-arrested on suspicion of bribery = in November 2019 ~ January this year in collusion with two former executives of the company so that ADK's predecessor "Asatsu DK" could be selected as a recontractor of Dentsu, a major advertising company that served as a full-time agent for the organizing committee to collect sponsors for the Olympics.

SHINICHI UENO - FORMER PRESIDENT ADK HOLDINGS

Former president of ADK on Olympic corruption recognizes illegality: "Well, it's not good"

In the corruption case surrounding the Tokyo Olympic and Paralympic Games, a major advertising company "ADK Holdings" suspected former director of the organizing committee of the Games Haruyuki Takahashi (78) = re-arrested on suspicion of bribery = A part of the remittance to the side was pointed out by the corporate lawyer as "bribery" It was found in interviews with related parties. This point was reported to the former president, Shinichi Ueno (68) = arrested on suspicion of bribery = but no measures were taken. The Tokyo District Public Prosecutors' Special Investigation Department has also grasped the series of circumstances and is investigating the former president believing that he was aware of the bribery.

According to the officials, ADK had repeatedly asked its former directors since around 2014 to become a subcontractor of Dentsu, a major advertising company entrusted by the organizing committee as a dedicated agency to attract sponsors. ADK was judged to be a bribe by the Special Investigation Department: (1) about 20 million yen sent to a consulting company (dissolved) where a golf friend of a former director was president in December '18, and (2) about 27 million yen sent to the consulting company "Commons" represented by a former director in November '17 ~ January this year.

(1) was funded by the remuneration obtained from the organizing committee in connection with the tournament sponsorship contract work of Park24, a parking lot service company for which ADK acted as an agent, and around the beginning of '19, immediately after the remittance to the consulting company, the corporate lawyer pointed out that the former director was a deemed public servant, and that it was "bribery." In the spring of the same year, the former president was reported by his subordinate, former senior managing executive officer Shigeharu Hisamatsu (63) = same = based on this opinion that it was a "gray remittance", but he did not see it as a problem, saying, "Well, it's not good." The former senior managing executive officer seems to have given statements to the Special Investigation Department about these exchanges with the former president.

In addition, (2) was paid in the name of sports marketing consulting fees, but the former senior managing executive officer explained that it was a "reward for the convenience related to the Olympic business" in his research. The former board member said that no reports or other deliverables related to consulting work were submitted.

The former president has denied collusion with the former senior managing executive officers to the Special Investigation Department and apparently denied the charges. The former president offered his resignation from the position of president on the 19th after his arrest, which was approved on the same date.

Former board member returns sponsorship money Former ADK executive "received remittance order" Olympic corruption

In the corruption case surrounding the Tokyo Olympic and Paralympic Games, a former executive of "ADK Holdings" who was arrested on suspicion of bribery told the Tokyo District Public Prosecutors' Special Investigation Department that a part of the alleged bribe funds was transferred to the company where an acquaintance of the former director was president at the direction of Haruyuki Takahashi (78) = re-arrested on suspicion of bribery = former director of the Games Organizing Committee. About 20 million yen was funded by sponsorship fees (sponsorship money) of companies that ADK was involved in the contract, and the Special Investigation Department is investigating the former director who believed that the sponsorship money was repatriated to him.

According to people familiar with the matter, ADK asked a former director to become a subcontractor of Dentsu, a major advertising company entrusted by the organizing committee as a dedicated agency to attract sponsors. This request was made by two suspects = arrested on suspicion of bribery = former senior managing executive officer of ADK's predecessor "Asatsu DK" Shigeharu Hisamatsu (63) and former Olympic and Paralympic Division General Manager Toshiaki Tada (60).

In 2016, the two visited Commons, a consulting company represented by a former director, once every two months, and repeatedly asked them to subcontract to the company. The former director reportedly instructed Dentsu's Olympics staff to transfer Park24, a parking service company that Dentsu had already negotiated a contract with, to ADK. Although Dentsu was reluctant, ADK eventually took charge of Park24 as a subcontractor, and the company was selected as a sponsor in July '18.

In December of the same year, the company paid 1 billion yen to the organizing committee, of which about 80 million yen was paid to Dentsu and another 40 million yen from Dentsu to ADK. Around this time, the former director instructed the former general manager to remit half of the approximately 40 million yen to ADK to the consulting company (dissolved) where the former director's golf buddy was the president.

The former general manager and former managing executive officer are believed to have testified to the Special Investigation Department about this series of exchanges with the former director. It is said that the consulting company to which the remittance was received was a dormant company at the time, but the former senior managing executive officer also explained that he did not investigate the situation of the remittance destination.

In addition, the former senior managing executive officer also testified that he reported the remittance to the consulting company in advance to former ADK president Shinichi Ueno (68) = arrested on suspicion of bribery = . In response, the former president seems to have denied that he had received any reports.

On the other hand, the former director is said to have told the Special Investigation Department that he "does not remember" the remittance from ADK to the consulting company.