Naoto Kato, left, the board chairman of Nihon University, holds a news conference on 10 December, along with Buichiro Watanabe, a vice president of the university. Kazuhiro Nagashima, the new chairman of Nihon University, attacked his predecessor in connection with a widening financial scandal that Naoto Kato said had besmirched the reputation of the 130-year-old institution.
Following his arrest on suspicion of tax evasion, Kato held a news conference on December 10 to announce that the private university in Tokyo had permanently cut all ties with Hidetoshi Tanaka.
He apologised to university students, their parents and alumni for what had happened.
Over the 13 years that Tanaka served as board chairman, he concentrated his authority by setting up a system of appointing board members in a way that gave him sway over how board meetings were held.
Kato, who serves as a university president, indicated that there was a strong possibility of dissolving Nihon University Enterprise Co., the subsidiary that was involved in a breach of trust case that led to the indictment of a former Nihon University board member with close ties to Tanaka, 75.
Kato could not contain his bitterness towards Tanaka.
This is the first time that a board chairman has been arrested in the 130-year history of our university, he said. I feel anger at the dirtying of Nihon University. Kato said Tanaka would not be allowed to have any role in Nihon University, nor receive any severance pay. After his arrest, Tanaka was removed as chairman of the board.
Kato said a committee made of mainly outsiders would be set up in January to discuss how to restore the reputation of the university.
One of the topics to be discussed is the manner in which future board members are chosen. Sources said that consideration would be given for establishing a more effective whistle-blower system.
There were signs that Nihon University would have its 9 billion yen $79 million or so in government subsidies cut.
The Promotion and Mutual Aid Corporation for Private Schools of Japan, which handles the subsidies, has withheld making a decision on the amount to be distributed to Nihon University in the current fiscal year. Sources said an announcement would be made in January.
The education minister Shinsuke Suematsu called for a very strict assessment to be carried out, leaving open the possibility that Nihon University wouldn't receive any subsidy.
If the subsidy is cut, tuition fees may need to be raised in the coming year, according to Kato.