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OLC Outsourced Services
to Right-wing-related Company



May 20th, 2005

Disney Firm Dealt with Rightists

YOMIURI SHIMBUN

CHIBA - The operator of Tokyo Disney Resort outsourced cleaning services to a real estate firm connected with an executive of a rightist group, The Yomiuri Shimbun has learned.

According to sources, the deal by Oriental Land Co. with real estate firm Chuo Kohatsu lasted seven years, ending late last year.

In a deal worth a total of 900 million yen, Chuo Kohatsu outsourced the contract to a separate company, allowing it to earn a 370 million yen profit.

Oriental Land is expected to shortly terminate the contract due to the leaking of the deal, the sources said.

According to Oriental Land, Chuo Kohatsu, which is based in Urayasu, Chiba Prefecture, was contracted in September 1984 to clean the headquarters of the Disney resort operator in the same city.

Chuo Kohatsu was led from April 1984 to October 1986 by a brother of Saburo Shiga, 79, who is an honorary leader of Zen Nippon Aikokusha Dantai Kaigi, a nationwide organization of rightist groups, and who also was a former member of a criminal organization.

Shiga's eldest son took the helm of the real estate company from December 1989 through February this year. The current president is the auditor of Keisan Kensetsu Kogyo, a construction company in Chiyoda Ward, Tokyo, which was founded by Shiga and others.

Chuo Kohatsu has so far been found to have received between about 110 million yen and 140 million yen every year, totaling about 900 million yen in seven years under the discretionary contract.

According to the sources, Chuo Kohatsu has only a handful of employees and the cleaning business was completely outsourced to a major building maintenance company in Tokyo, meaning Chuo Kohatsu acted mostly as an intermediary in the deal.

Chuo Kohatsu transferred a total of about 530 million yen to a bank account held by the building maintenance company in the seven years between 1998 and 2004, amounting to about 60 percent of the payment from Oriental Land. The remaining 370 million yen was Chuo Kohatsu's profit.

Shiga was an acquaintance of Oriental Land's late former Chairman Masatomo Takahashi. Takahashi and Shiga together founded Kyosan Kensetsu.

"Shiga was Takahashi's friend. I knew he was a rightist member," Oriental Land President Toshio Kagami, 69, said. "I don't know the relationship between Shiga and Chuo Kohatsu."

Shiga has failed to respond to inquiries made by The Yomiuri Shimbun since April.

An Oriental Land spokesman said: "We're investigating the deal. The deal will be canceled if we find a compliance problem."

-- Source: Yomiuri Shimbun

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