Sources say the chairman of major Japanese publisher Kadokawa who was arrested in connection with a Tokyo Games bribery case is suspected of virtually approving payment of alleged bribes at an in-house meeting.

Kadokawa Tsuguhiko was arrested last month on suspicion of bribing a former executive of the Tokyo Olympics and Paralympics organizing committee, Takahashi Haruyuki.

The publisher signed a sponsorship contract with the committee in 2019.

Tokyo prosecutors suspect the firm paid Takahashi 76 million yen, or about 520,000 dollars, to thank him for arranging to have it chosen as a Games sponsor.

The money was allegedly paid to a company headed by his acquaintance as consulting fees.

The payment reportedly did not require approval by the chairman. But the sources say he is suspected of being briefed on the matter and virtually giving approval at a meeting of executives in 2018.

Kadokawa is reportedly denying the allegations.