(Jan 27): The president of Fuji Television Network Inc and the chairman of its parent company will both step down over the handling of a sexual harassment scandal that has already toppled one of Japan’s most prominent TV hosts. 

Koichi Minato, the head of the TV arm of Fuji Media Holdings Inc, will resign as the president effective from Monday, the company announced. His successor, Kenji Shimizu, will take over on Tuesday. Fuji Media chairman Shuji Kanoh also stepped down on Monday, the company said. It added that the changes were a first step towards what could be more fundamental reforms. 

The shake-up at the TV station follows allegations that former J-pop star Masahiro Nakai sexually harassed a woman while he was working for the broadcaster as a TV host. A local tabloid reported in December that a Fuji TV employee arranged the meeting between Nakai and the alleged victim at which the incident took place. 

The company on Monday reiterated a denial of employee involvement in the matter, while saying that corporate governance hadn’t functioned effectively. Incoming president Shimizu said he couldn’t deny that other, similar incidents might surface.  

“There’s no future for Fuji TV without regaining the trust” of the public, Shimizu told a press conference attended by hundreds of journalists. “I will put all my efforts into this.” His comments came after repeated apologies from a group of executives. 

First reported by a tabloid magazine last month, the story burst into Japan’s mainstream media in January after activist investors publicly condemned Fuji Media for lack of transparency and poor corporate governance over its handling of the scandal. The company has since announced it will have an independent panel investigate the matter and publish its findings.   

Nakai last week announced his retirement from the entertainment business and apologised over the incident. He said earlier that a settlement reached with the alleged victim required him to maintain confidentiality. 

Fuji Media’s shares have gyrated and its bond spreads have widened, as spooked advertisers including Nissan Motor Co suspend ads and withdraw programme sponsorships. A Cabinet minister last week expressed concern that the scandal could undermine public trust in the broadcast industry. 

The firm is currently investigating impact on its revenue, Fuji Media president Osamu Kanemitsu said at the press conference. Negotiations for advertisements on the broadcaster “have effectively stopped”, incoming president Shimizu said. 

The company is seen as a target for activists, market players have said, because it has unrealised gains in its real estate business and an extremely low valuation. Japan’s five broadcasters’ valuations have been pressured by a shrinking TV advertisement market.

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