Fuji TV Faces Management Turmoil after Fumble over Nakai Scandal

Tokyo, Jan. 25 (Jiji Press)--Fuji Television Network Inc. is facing management turmoil over its poor handling of a sex scandal involving popular television personality Masahiro Nakai, who has announced his retirement from show business.

The broadcaster, whose employee was reportedly involved in the scandal, drew criticism after suggesting at a press conference on Jan. 17 that an investigative committee it planned to set up would not be based on the guidelines of the Japan Federation of Bar Associations, raising doubts about its independence. It also limited participation in the press conference to reporters from certain media outlets.

As a result, many sponsors, including Toyota Motor Corp., pulled their commercials from Fuji Television programs soon after the press conference. According to the broadcaster, 75 companies had suspended their commercials as of Monday, and the number is continuing to grow.

Fuji Television has since announced the launch of a third-party investigation committee based on the bar association guidelines, as well as a fresh press conference to be held in an open format.

The turmoil is beginning to affect not only existing advertising contracts, under which Fuji Television does not have to refund fees, but also possible new contracts. A Nippon Telegraph and Telephone Corp. official said that its group companies will continue to suspend commercials next month and beyond, and will refrain from signing new contracts.

[Copyright The Jiji Press, Ltd.]