Arrest warrant served on Pacific Consultants International former president for income tax evasion

TOKYO, June 5 (AP) – (Kyodo)—Prosecutors served a fresh arrest warrant Thursday on a former president of major construction consultancy Pacific Consultants International for allegedly evading income taxes in order to raise funds to send to foreign government officials over development projects financed with low-cost loans from the Japanese government, the prosecutors said.

Shota Morita, 66, the former PCI president, was first arrested on April 23 for allegedly causing financial damage to his company over a Japanese government project to dispose of chemical weapons abandoned by the Imperial Japanese Army in China during World War II.

On Thursday, investigators at the Tokyo District Public Prosecutors Office also arrested Yukio Watanabe, 58, an incumbent PCI board member, as an accomplice of Morita on suspicion of evading taxes.

The prosecutors said they searched PCI’s head office in the city of Tama on the western suburbs of Tokyo, Watanabe’s home and several other PCI-linked locations, the same day.

PCI sources earlier said that the company had remitted 100-200 million yen each year to a Hong Kong-based business firm, which is linked with a former PCI executive official, as funds to win favor from foreign government officials over Japanese government-financed development projects.

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