A former Takefuji Corp. executive has told police that Yasuo Takei, founder and chairman of the consumer loan company, ordered him to bug the phones of seven senior Takefuji officials, investigative sources said Wednesday.

Kunio Kotaki, 61, a former senior managing director who was arrested Nov. 14 on suspicion of engaging in illegal wiretapping, reversed earlier statements in which he denied Takei was involved, the sources said.

Takei, 73, was arrested Tuesday on suspicion of violating the Telecommunications Business Law by having Takefuji employees bug the phone of a journalist who had written stories critical of the loan company. Police resumed on Wednesday their search of Takefuji's headquarters for evidence of the wiretapping.