(v) Fujitec purchased failed personal investments made by President Uchiyama’s related entity

In December 2006, a President Uchiyama related entity acquired a recreational sports facility from a public agency for JPY239.5 million (link) and renamed it Fit Will Hikone (“FWH”) (link). FWH offered table tennis, swimming, fitness, and cultural classes to the public.

According to the minutes of the 166th House of Representatives-Secretariat Administration Monitoring Committee No. 3 on April 24, 2007, FWH was barely managing to stay in the black just prior to its sale to the President Uchiyama related entity (link). After buying FWH, Uchiyama International began charging Fujitec facility usage fees. Oasis suspects the sole purpose of these payments was to cover potential losses and operating costs for FWH paid by Uchiyama International, but justified as “usage fees”. Fujitec paid JPY18 million in usage fees over approximately two years. In FY2010, Fujitec bought FWH from Uchiyama International for JPY252 million, which seems to have allowed Uchiyama International to profit off of what we believe was a barely profitable or loss-making facility. The facility was later shut down.

We seriously question the rationale for this transaction for Fujitec.