Tohokushinsha Film Corporation which operated the satellite channel as a major broadcaster, discovered the illegal status of its foreign shareholding in August 2017.
[1][2] On 3 February, the Shukan Bunshun released its report and evidence photographs that cast doubt on the MIC officials not to have recalled the company on the contrary of being informed of a legal violation regarding foreign ownership of the broadcasting company, due to the illegal preferential treatment from its executives including Seigoh Suga, the son of Deputy Prime Minister Yoshihide Suga.
[3] On 12 February, Tohokushinsha set up an investigation committee to scrutinize the entertainment for officials by its own executives[4] The committee eventually found that 13 MIC officials had been treated to lavish meals and wines on 54 occasions and that 20 times of those dinners were not listed in the reception reports published by the MIC from July 2016 until December 2020.
[6] On the same day, House of Representatives Budget Committee summoned Taniwaki who then testified that the MIC did not violate the National Public Service Ethics Act.
[11] On 4 June, the MIC announced it had newly discovered that other executives had received a total of 78 entertainments from NTT or Tohokusinsha and punished 32 officials involved in the matter.