Japan Airport Building apologized for inappropriate actions in the selection of massage chair contracts installed by its subsidiary Big Wing at Haneda Airport.
An investigation by a special committee revealed inappropriate transactions aimed at providing economic benefits to a company related to a former House of Representatives member’s son, headquartered in Minato-ku, Tokyo. In addition to the massage chair business, inappropriate transactions were confirmed in advertising agency and management consulting services.
Of the sales from the massage chairs installed under a contract with Big Wing from September 2006, 60% initially, and 70% after September 2008, was paid as equipment installation usage fees. However, a subcontracting company (Company X) was actually carrying out the operations. In 2016, tax authorities pointed out that the company’s operational reality was not recognized, and its share was deemed a donation under tax law, resulting in a payment of 66 million yen including delinquent tax and additional taxes. Consequently, the contract with Big Wing was terminated, and a commission contract was concluded with subcontractor Company V, while Company X made monetary payments to the company. Big Wing’s Managing Director Yuwa Iwase was aware, and in July 2020, increased the usage fee to 80% of sales.
On the other hand, Company X faced heavy commission payment burdens and lacked the capacity to update equipment, leading to the transfer of operations in Terminal 1 and Terminal 2 to another company (Company V). Company V, not acknowledging the commission payments to the company, refused payment, reducing the usage fee to 70%. With the refusal from Company V, a new outsourcing contract was concluded with another company (Company Y) introduced by the same individual in June 2023, with the contract with Company V expiring on schedule after three years. The contract was eventually extended by one year after Company V protested and sent a request for retraction to Big Wing.
As compensation for the delay in concluding contracts, a cleaning service contract for the massage chairs in Terminal 1 and Terminal 2 was agreed upon with Company Y. However, despite only performing minimal cleaning, a false report was created stating all equipment had been cleaned, which was condoned. In December 2024, upon contract expiration with Company V, Big Wing entered into a commission agreement with Company Y.
In addition, Big Wing and the company entered into an airport advertising agency contract in December 2008. Although advertising placement fees were discounted, payments had been delayed since around 2013, with outstanding amounts reaching approximately 19.28 million yen as of the end of March 2024, for which an allowance for doubtful accounts has been set. A tax audit pointed out that the company had received significantly higher advertising fees beyond the standard rates from advertisers, and Big Wing’s personnel had reported hearing similar stories from other companies, although no fact-checking was conducted despite such actions being prohibited.
In 2013, a business advisory contract was signed between Japan Airport Building and Company Z, but this contract was merely a formality for financial payments to the company. The contract ended in March 2016, with tax authorities recognizing it as a donation, leading to a payment of just under 11 million yen.
The investigation revealed that Mr. Iwase had deleted the “LINE” application before his cell phone was collected. While Mr. Iwase explained that it was not intentional, the special investigation committee determined it was an intentional deletion, hindering a fair investigation as an inappropriate action.
The series of transactions was led by Nobuaki Yokota, President, and CEO, with the acceptance of Isao Takashiro, Chairman, and CEO. Based on the investigation results, both resigned.
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