The company responsible for building and maintaining parts of the JMSDF submarine fleet allegedly manipulated subcontractors to conduct fraudulent transactions and used bribes to bribe submarine crew members, Xinhua news agency reported on Friday. Gained billions of yen in secret funds.
Kawasaki Heavy Industries has admitted to the Osaka Regional Taxation Bureau that the maintenance division of its Kobe shipyard has been directing subcontractors to conduct fraudulent transactions for the past 20 years.
The money received was transferred to subcontractor accounts as secret funds, which were used to purchase personal items or entertainment expenses for submarine crew members.
The Japanese newspaper Asahi Shimbun reported that JMSDF submarines handed over lists of needed items to the maintenance division of Kawasaki Heavy Industries, adding that the maintenance division instructed subcontractors to use secret funds to purchase the items, which were then transferred to the respective Submarine personnel were handed over.
The Osaka Regional Taxation Bureau is investigating Kawasaki Heavy Industries.
Japan's Defense Minister Minoru Kihara announced Friday that a special investigation into the case has been launched, in addition to the current investigation conducted by the Osaka Regional Taxation Bureau.
Tetsuo Maeda, a local commentator, criticized the use of taxpayers' money, which was meant to enhance defense capabilities, as being misused by the JMSDF.
“The misuse of funds from the Defense Ministry and the submarine construction and maintenance budget is intolerable for taxpayers,” Maeda said.
Kawasaki Heavy Industries has admitted to the Osaka Regional Taxation Bureau that the maintenance division of its Kobe shipyard has been directing subcontractors to conduct fraudulent transactions for the past 20 years.
The money received was transferred to subcontractor accounts as secret funds, which were used to purchase personal items or entertainment expenses for submarine crew members.
The Japanese newspaper Asahi Shimbun reported that JMSDF submarines handed over lists of needed items to the maintenance division of Kawasaki Heavy Industries, adding that the maintenance division instructed subcontractors to use secret funds to purchase the items, which were then transferred to the respective Submarine personnel were handed over.
The Osaka Regional Taxation Bureau is investigating Kawasaki Heavy Industries.
Japan's Defense Minister Minoru Kihara announced Friday that a special investigation into the case has been launched, in addition to the current investigation conducted by the Osaka Regional Taxation Bureau.
Tetsuo Maeda, a local commentator, criticized the use of taxpayers' money, which was meant to enhance defense capabilities, as being misused by the JMSDF.
“The misuse of funds from the Defense Ministry and the submarine construction and maintenance budget is intolerable for taxpayers,” Maeda said.
