NEC's Chairman Tadahiro Sekimoto resigned last week, taking blame for a growing procurement scandal enveloping the Japanese computer and communications equipment vendor.
Sekimoto will become an advisor to NEC and a member of the company board, an NEC spokesman said. The position of company chairman will remain open while no other positions will be affected, he added.
Sekimoto's resignation comes as two NEC subsidiaries are under investigation for overbilling Japan's Defense Agency and in turn offering jobs to former agency officials. In recent weeks, the offices of NEC and its subsidiaries have been raided and several officials have been arrested. One official killed himself in connection with the scandal.