On June 9, 2021, Japan’s largest operator, NTT, specified that the salaries of their leaders will be revised downwards for the next three months. Many government meals are eligible for billions of up to $ 500 per person that the company could have taken advantage of.
40% salary cut for NTT presidents
NTT, Japan’s largest operator, is partially owned by the country’s government. It is therefore not surprising that meetings are organized with officials from the Ministry of Home Affairs and Communications. It’s perfectly legal. However, research shows that between 2016 and 2019 there were 29 meetings between these officials, plus the president and three NTT executives, in luxury restaurants. It was during those meals that the company also paid much of the bill.
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These events occur just weeks after Prime Minister Yoshihide Suga raised the possibility of a regulatory change that would make it more difficult to keep the same phone number when switching operators. The affair sparked speculation among the Japanese and the media, who questioned NTT’s intentions regarding the food. In fact, everything indicates that by paying for these dinners, the company was trying to take advantage of the situation so as not to face the new regulations.
In their report, NTT investigators said that while the meetings weren’t illegal, they asked officials to break their code of conduct – something the company’s executives knew. The latter was therefore accused “Inadequate behaviour”.
As a result, NTT president Jun Sawada will cut his salary by 40% for three months starting in July. For his part, Akira Shimada, Vice President, will see his 20% decline for the same duration.
According to the investigation, no decision by the ministerial officials was influenced by the expensive dinners paid for by NTT. For its part, the company assured that such events would no longer be permitted.