25 Juin 2012
June 25, 2012
Government watchdog to audit TEPCO
Japan's Board of Audit is to evaluate the activity of Tokyo Electric Power Company, operator of the disaster-hit Fukushima nuclear plant, as the company receives a massive injection of public funds.
This is a rare move for the watchdog, which normally only audits government and semi-public entities. However, TEPCO will be temporarily placed under state control following the capital injection, with the government taking more than 50 percent of the company's voting rights.
The government has set aside 30 billion dollars in financial assistance to help TEPCO pay compensation to victims of last year's nuclear accident.
The government will also provide some 12.5 billion dollars in public funds to aid the power company in balancing its books.
Last month, TEPCO announced it will cut more than 41 billion dollars in costs by the end of fiscal 2021, in line with government-approved measures.
The Board of Audit will evaluate as early as this summer whether TEPCO is fulfilling its obligations under the plan.