New arrests for corruption around the Tokyo Games

Corruption allegations against a former member of the Tokyo Olympics organizing committee have implicated a third company that sponsored the Games, as Japanese prosecutors arrested Haruyuki Takahashi for the third time on Tuesday.

The latest allegations of questionable payments relate to 15 million yen (C$140,000) that Takahashi and another official received from Daiko Advertising Inc., Tokyo district prosecutors said in a statement.

The arrests, which come the same day as former Prime Minister Shinzo Abe’s state funeral, which attracts foreign dignitaries including IOC President Thomas Bach and US Vice President Kamala Harris, underscore prosecutors’ determination to shed light on the Olympic scandal.

Japanese culture generally favors “saving face” and there is a tendency to avoid embarrassment on the international stage. The arrests are also likely a setback for Japan’s ambitions for Sapporo’s bid for the 2030 Winter Olympics.

A Daiko official was also arrested. Daiko apologized, “for the inconvenience caused to customers and stakeholders”, and promised to cooperate with the investigation.

Daiko is the third company embroiled in the growing Olympic scandal, after Aoki Holdings, which supplied clothing for the Japanese Olympic team, and major publisher Kadokawa.

With more than 50 companies sponsoring the Tokyo Olympics, speculation is rife that a string of arrests could continue for months.

Takahashi, 78, a former executive at advertising firm Dentsu, has been detained since his initial arrest on August 17 on suspicion of Aoki bribery totaling 51 million yen (C$480,000).

Aoki, who makes inexpensive clothes, was an amazing choice to create the team’s outfits. Three Aoki officials were also arrested.

Last month, prosecutors arrested Takahashi again, citing additional bribery allegations, this time from Kadokawa, which also produces movies and games, for a total of 76 million yen ($720,000 CAD).

The sponsorship allowed Kadokawa to publish programs and other books related to the Tokyo Olympics. Two Kadokawa officials were also arrested.

Eight days later, prosecutors arrested Tsuguhiko Kadokawa, the company’s chairman, on allegations of bribing Takahashi for 69 million yen (C$650,000). Kadokawa claimed his innocence.

Takahashi has already been formally charged with bribery in Aoki’s payments. On Tuesday, he was officially charged with Kadokawa’s payments.

Tokyo hosted the Olympic and Paralympic Games in the summer of 2021, after a year-long postponement due to the pandemic. The official cost has been put at US$13 billion, mostly public money.

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