Photo/Illutration Masahiko Takaura, center, president of Kinki Nippon Tourist Co., speaks at a news conference in Osaka on April 12. (Kenta Nakamura)

Travel agency giant Kinki Nippon Tourist Co. announced on Aug. 9 that its president, Masahiko Takaura, will step down to take responsibility for overcharging municipalities for work related to COVID-19 vaccinations.

“I decided to settle this issue (by resigning) now that we have ensured measures to prevent this from happening again,” Takaura said at a news conference on Aug. 9.

On Sept. 1, he will be succeeded by Shuichi Uryu, the current president of Kinki Nippon Tourist Blue Planet Co.

Kinki Nippon Tourist had 13 directors and auditors voluntarily return a portion of their salaries and disciplined 37 employees.

Three senior officials of the parent company, KNT-CT Holdings Co., will also return part of their salaries, include President Akimasa Yoneda.

Kinki Nippon Tourist allegedly overcharged fees for commissioned work at call centers related to COVID-19 vaccinations.

Osaka prefectural police arrested four employees, including the former manager of MICE Branch Kansai (located in Osaka’s Naniwa Ward) and an employee of the Shizuoka branch.

As of Aug. 9, up to 50 municipalities had been overcharged, amounting to 900 million yen ($6.3 million), according to Kinki Nippon Tourist.

The company has released a report by an investigatory panel consisting of outside directors and experts.