Photo/Illutration Takeshi Niinami, chairman of the Japan Association of Corporate Executives (Keizai Doyukai), speaks at a news conference on Sept. 3 in Tokyo. (Kenta Sujino)

The embattled chairman of the Japan Association of Corporate Executives (Keizai Doyukai) resigned after losing support following a police investigation into his alleged importation of supplements containing banned substances.

The economic organization announced on Sept. 30 that it had accepted Takeshi Niinami’s resignation during a board meeting held earlier that day.

Until a new chairman is appointed, Vice Chairman Mutsuo Iwai, who also serves as chairman of Japan Tobacco Inc., will assume the role of acting representative.

At an afternoon news conference, Iwai explained that board members were divided over Niinami's status, and forcing a vote on him continuing as chairman risked dividing the association.

After this was conveyed to Niinami, he voluntarily offered to resign.

Niinami said a split within the association "would be extremly problematic not only for Doyukai, but also for Japan," leading him to step down.

"To be honest, there were things I still wanted to do. I feel disappointed," he added. 

The resignation comes in the wake of a scandal that erupted in August, when police searched Niinami’s residence in Tokyo on suspicion of violating drug control laws.

Authorities were investigating the import of supplements from the United States that reportedly contained tetrahydrocannabinol (THC), the psychoactive compound found in cannabis.

Customs officials confirmed that the supplements exceeded Japan’s legal THC limits.

However, no illegal substances were found during the search and Niinami’s drug test results were negative for narcotics.

Niinami stepped down as chairman of Suntory Holdings Ltd. on Sept. 1, citing the need to take responsibility for the controversy.

Despite maintaining his innocence and asserting that he had not broken any laws, he had suspended his activities at Keizai Doyukai pending the outcome of an internal ethics review.

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