Companies that are now severing ties with the scandal-ridden Johnny & Associates Inc. entertainment agency are hypocrites whose actions come far too late, the former chief of Nestle Japan Ltd. said.

Kozo Takaoka, who served as president and CEO of the food and beverage company, said that he and other corporate leaders were well aware of allegations that Johnny Kitagawa, founder of the agency, was a child molester who preyed on boys signed by his agency.

But unlike other companies, Nestle Japan never featured the agency’s singers and actors in its advertisements during Takaoka’s presidency from 2010 to 2020.

“Sexual abuse is a crime. By global standards, you should not do business with a company facing such allegations, even if they are only rumors,” Takaoka told The Asahi Shimbun on Sept. 20.

“Despite being aware of rumors of abuse, many companies used Johnny’s celebrities to increase profits,” Takaoka said. “Who are they to criticize the agency now?”

Kitagawa, who died in 2019 at the age of 87, was never held criminally accountable for his actions.

In an earlier Facebook post, Takaoka said that even he, an outsider to the entertainment world, had heard rumors about Kitagawa’s abuse for more than 20 years.

“Ignorance is no excuse,” he said. “Businesses and media should point a finger at themselves first.”

Earlier this month, Johnny & Associates, one of Japan’s most powerful talent agencies, finally acknowledged that Kitagawa had sexually abused many young male performers of the agency over decades.

Several companies, including industry giants, have since announced that they will cut or not renew their advertising contracts with Johnny & Associates.

Takaoka said he decided to speak out because he wanted to help Japanese companies improve their corporate governance.

“They should not wait until allegations are proved in court. They should act even if the allegations are just rumors,” he said. “That’s how it works at companies with the highest standards of corporate governance in the world.”