Photo/Illutration Kansai Electric Power President Shigeki Iwane responds to questions at a news conference on Sept. 27 in Osaka. (Nobuhiro Shirai)

Kansai Electric Power Co. executives received millions of yen over seven years from a former local government official who greatly influenced bringing a nuclear power plant to Takahama, Fukui Prefecture.

The company's president, Shigeki Iwane, said at a news conference Sept. 27 that he and 19 others received a total of 320 million yen ($3 million) until 2018 from an individual named by sources as Eiji Moriyama, who served as Takahama deputy mayor between 1977 and 1987. Moriyama died in March at age 90.

Moriyama was the subject of a tax audit that revealed he received about 300 million yen from a construction firm involved in nuclear plant projects, with some of those funds passed on to the Kansai Electric executives, including Chairman Makoto Yagi.

The four Takahama nuclear plant reactors started operations between 1974 and 1985. Moriyama was able to assuage opposition among locals to bringing the nuclear plant to Takahama and had extensive dealings with many Kansai Electric executives, sources said.

Iwane apologized at the news conference, saying that the executives had revised their tax returns and had already paid additional income tax.

"We tried to refuse the money or asked to return it, but it became difficult because he strongly rejected such attempts," Iwane said. "We temporarily kept the money under the control of each individual while waiting for an opportunity to return it."

He said that while gifts acceptable as a general social practice were kept, the rest of the money had been returned.

Iwane denied any relationship between the money and construction work contracts, but said he accepted that doubts were raised about whether the company was earnest in terms of its legal compliance.

Industry minister Isshu Sugawara, who oversees the nuclear industry, said the reports, if true, were completely outrageous.

"This goes to the very heart of the trust of communities hosting nuclear plants," he said at a Sept. 27 news conference. "The (industry ministry) will handle this in a serious manner after looking thoroughly into the facts of the case."

Ministry officials were expected to question Kansai Electric officials later on Sept. 27.

Takahama residents painted a picture of Moriyama as an extremely influential figure.

A local assembly member knowledgeable about the nuclear plant situation in Fukui Prefecture said Moriyama played a major role in bringing the No. 3 and No. 4 reactors to Takahama.

"He was treated like a god in the local community," the assembly member said.

The No. 3 and No. 4 reactors, which began operating in 1985, use fuel that mixes plutonium and uranium. The two reactors are currently in operation after having met stricter safety standards imposed following the 2011 triple meltdown at the Fukushima No. 1 nuclear power plant.

Another local assembly member said that even after retiring as deputy mayor, Moriyama continued to exercise influence, with successive mayors unable to do anything that went against his wishes.

A Kansai Electric executive said Moriyama was known within the company as an influential figure in Takahama.