Japanese major oil company Eneos Holdings Inc. said Tuesday it has dismissed its President Takeshi Saito after finding out he inappropriately hugged a woman while drunk.

The company was notified of Saito's misconduct in November through its whistle-blowing system and subsequently asked outside lawyers to launch an investigation, which verified the allegation, it said in a statement.

The scandal is another blow to the company, whose former CEO Tsutomu Sugimori was forced to step down last year amid a report that he sexually harassed and injured a hostess at a bar.

Saito's inappropriate behavior was observed at a social gathering also attended by Executive Vice President Yasushi Yatabe and Senior Vice President Kotaro Sunaga, Eneos said.

The company called Saito's acts "unacceptable" and said it would ask him to return part of his compensation. Sunaga will also take a pay cut as he made inappropriate remarks to the woman, it said.

Eneos also asked Yatabe to step down as he was in the position to manage the company's compliance but failed to stop Saito's misconduct, according to the company.

==Kyodo

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