Photo/Illutration Nihon University Itabashi Hospital in Tokyo’s Itabashi Ward on Oct. 7 (Asahi Shimbun file photo)

Prosecutors again indicted a former Nihon University board member and a medical industry bigwig on breach of trust charges in a widening financial scandal related to the school’s hospital, sources said Nov. 16.

Tadao Inoguchi, 64, and Masami Yabumoto, 61, former chief of Osaka-based Kinshukai, a major medical corporation group, are suspected of causing a total of 420 million yen ($3.7 million) in losses for the university.

For the latest charges, they are accused of getting the Tokyo-based university to pay about 200 million yen in unnecessary expenses in a medical equipment procurement deal.

The two were earlier indicted over a series of dubious money transfers of 220 million yen stemming from a contract to reconstruct the university’s hospital.

Tetsuya Yoshida, 50, a representative of a medical consulting firm, was also indicted over his suspected involvement in the equipment-procurement transaction.

One big question concerning the case was whether Hidetoshi Tanaka, chairman of the university’s board, would face charges from the Tokyo District Public Prosecutors Office.

Inoguchi admitted that he gave a total of 70 million yen to Tanaka, 74, and his wife “in return” for a string of business dealings, investigative sources said.

But prosecutors could not conclude that Tanaka knew about the moneymaking mechanism, the sources said, so the investigation against the chairman has been shelved for now.

To procure medical and electronic record-keeping equipment for Nihon University Itabashi Hospital, the indicted trio included the unnecessary involvement of two companies connected to Yabumoto’s side, the sources said.

Between May and August, they allegedly duped the university into agreeing on a lease contract that included a total of 200 million yen that went to the two companies, which had nothing to do with carrying out the deal, investigators said.

The suspects planned to transfer about 70 million yen of that money from Yabumoto’s side to a company connected to Inoguchi’s acquaintance, according to sources.

Around 27 million yen was transferred, but the remainder was not moved because of the prosecutors’ investigation and searches.

For the hospital reconstruction project, Inoguchi chose a Tokyo design office for the work by altering the evaluation scores of the bidders, according to the investigation.

The design office then transferred 220 million yen it received from the university to Yabumoto’s side in August 2020, investigators said.

Later, 66 million yen is believed to have been transferred to the company of Inoguchi’s acquaintance.

A university subsidiary, Nihon University Enterprise Co., was responsible for a series of contractual work. Inoguchi was a board director of the subsidiary.

Prosecutors suspect that Inoguchi and Yabumoto siphoned off and shared illicit profits through the subsidiary.

Inoguchi has denied he illegally caused financial damage to the university, while Yabumoto has admitted to the breach of trust charges related to the medical equipment, the sources said.

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