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Leopalace21 president to step down over faulty construction scandal

Eisei Miyama, president and CEO of Leopalace21 Corp., is pictured in this file photo taken in Tokyo's Nakano Ward on Sept. 12, 2017. (Mainichi/Motohiro Negishi)

TOKYO -- The president of major apartment developer Leopalace21 Corp. is set to resign over its defective construction work, those close to the company said.

Eisei Miyama, 61, president and CEO of Leopalace21 and a member of its founding family, will step down to take responsibility for the company's declining business performance and worsening corporate image resulting from the scandal.

His successor is expected to be selected from among those who do not hail from the company's founding family, according to sources close to the firm.

Miyama has served as president of Leopalace21 since February 2010.

An outside fact-finding panel comprising three lawyers is planning to release a final report by the end of May, detailing measures Leopalace21 should implement to prevent a recurrence of the problem and clarifying the responsibility of executives over the issue.

It has come to light that walls and ceilings in many of the firm's apartment complexes do not meet fireproof and soundproof standards, prompting the company to examine all of its 39,085 apartment buildings across the country.

Leopalace21 announced on May 9 that it will post an estimated 69 billion yen net loss on a consolidated basis in the business year that ended March 2019.

(Japanese original by Munehisa Ishida and Yuki Takahashi, Business News Department)

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