Photo/Illutration Naoto Kato, left, the board chairman of Nihon University, holds a news conference on Dec. 10 along with Buichiro Watanabe, a university vice president. (Kazuhiro Nagashima)

The new chairman of Nihon University mounted a blistering attack on his predecessor in connection with a widening financial scandal that Naoto Kato said had besmirched the reputation of the 130-year-old institution.

Kato held a news conference Dec. 10 to announce that the private university in Tokyo had “permanently cut all ties” with Hidetoshi Tanaka, following his arrest on suspicion of tax evasion.

He also apologized to university students, their parents and alumni for what had happened.

Kato explained that over the 13 years Tanaka served as board chairman, he concentrated authority by setting up a system of appointing board members in a manner that gave him huge sway over how board meetings were held.

Kato, who also serves as university president, also indicated there was a strong possibility of dissolving Nihon University Enterprise Co., the subsidiary 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 toward Tanaka.

“In the 130-year history of our university, this is the first time a board chairman has been arrested,” he said. “I feel anger at the dirtying of Nihon University.”

Kato said Tanaka would not be permitted to have any role in Nihon University, nor receive severance pay. Tanaka was removed as board chairman after his arrest.

Kato said a committee made up mainly of outsiders would be set up in January to discuss how to restore the university’s reputation.

One obvious topic to be discussed will be the manner in which future board members are chosen. Sources said consideration would likely also be given for establishing a more effective whistle-blower system.

In other developments, there were signs that Nihon University would have its 9 billion yen ($79 million) or so in government subsidies sharply 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 likely be made in January.

Shinsuke Suematsu, the education minister, called for a very strict assessment to be undertaken, leaving open the possibility that Nihon University would not receive any subsidy.

Kato indicated at his news conference that tuition fees may need to be raised in the coming year if the subsidy is cut drastically.