Inappropriate Connection between SDF and Defense Industry

Kawasaki Heavy Industries (KHI) revealed that it had accumulated secret fund for giving gifts to the crew of submarines they had supplied to Marine Self-defense Force (MSDF). The gifts have been sent from inappropriate funds since forty years ago. The amount of the secret fund is estimated as 1.7 billion yen at least between FY 2018 and FY 2024. The incident represents obscure relationship between military and industry.

Marine Self-defense Force has twenty-five submarines. Twelve out of them were made by KHI. Those submarines have inspection in every three years in Kobe, where KHI headquarters is located. It takes a half year for overhauling. During the period of inspection, KHI provided with tools for repair or shoes based on request of the crew. The crew, in return, participated in the inspection of KHI, laboring for maintenance of devices.

 

The crews eventually requested goods unrelated to the inspection. They included game machine, fishing tools or golf gears. KHI started to fund money to meet those requests. It was appropriated by empty orders to KHI’s business partners. KHI made orders to those partners for empty procurement from SDF to those partners. KHI reported those empty purchases to SDF. The fund was stocked in those partners. KHI used the fund to buy gifts for the submarine crew.

 

SDF and KHI have a long-time relationship. KHI occupies the second position, following Mitsubishi Heavy Industries, among the contractors with SDF. Its share in FY 2022 was 9.8 percent with contracts worth 169 billion yen. It is likely that KHI easily accepted the request from SDF members to maintain its status as a major contractor with SDF. That connection resembles a structure of military-industrial complex.

 

National Tax Agency has been conducting inspection in KHI since April. The agency recognizes the fund for gifts to submarine crew as should not be included in the necessary cost for their business, but the entertainment expenses which would not be applied to tax credit. Those entertainment expenses are estimated to be 1.2 billion yen for six years until June 2023. The agency is going to impose heavy additional tax to KHI.

 

The gifts were structurally funded by tax money. KHI has been claimed the cost of secret fund to SDF for years. If the submarine crew requested what they wanted for their amusements, they lacked consciousness that they were spending public money for their personal life. The Ministry of Defense is going to investigate with suspect of violation against SDF Ethics Act.

 

The ministry has been making special inspection in MSDF since July. The ministry has punished 65 MSDF members, out of which 11 were fired, with suspect of illegal receipt of salary with empty exercises of diving. As the government of Japan is expanding defense budget as much as 43 trillion yen between FY 2023 and FY 2027, the greater transparency on their spendings is needed.

Comments

Post a Comment

Popular posts from this blog

Amendment of Local Autonomy Law

The House of Representatives started discussion on revision of the Local Autonomy Law, which would vest the national government a power to instruct local government in an emergency. It may change the relationship between the national and local government, which has been recognized as equal. The opposition parties oppose the amendment, arguing that it would give the national government an excessive power.   With the Meiji Restoration, the national government abolished the feudal system, introducing modern governance. However, its autonomy was not sufficient. The governor of each prefecture was appointed by the national government. The local governments subordinated to the national government. It was as late as 2000 when  the Comprehensive Decentralization Law  was enacted and the relationship between the national and local government was defined as equal.   The national government found inconvenience in the relationship between the national and local government, when ...
Read more

Request for Final Nuclear Disposal Site

Ministry of Economy, Trade and Industry requested Genkai Town, Saga, to accept “literature survey” for building a final disposal site for high-level radioactive waste. Genkai is going to answer within this month. If it accepts, it will be the third place to accept that survey, following two places in Hokkaido. Main reason to accept the survey is supposed to be subsidy from the national government.   Japan has no final disposal site. Among all 54 reactors in 17 nuclear power generation plant, 12 reactors of 6 plants are operating. The rest of them are not in operation, some of which are determined to be decommissioned. Used nuclear fuels are stocked in each plant, 　 or have sent to a reprocessing plant in Rokkasho, Aomori. There are two plans to stock nuclear wastes in the intermediate facility for disposal, one is already built and another is still in negotiation.   Nuclear Fuel Final Disposal Act in 2000 determines to bury nuclear waste in the underground. Literature survey, ...
Read more

Not A Royal Wedding

The bride called her husband an indispensable existence and their marriage was necessary choice to protect their mind. The groom insisted on his life as only once and his right to be with his loved one. Her father wanted his daughter’s marriage to be celebrated by the people. The people were not sure whether the family was happy as a whole. Is this the traditional Japanese social system that makes no one happy? Mako Komuro, as known as Princess Mako during her life in one of the royal family Akishino, held on Tuesday a press conference with her husband Kei Komuro, right after submitting marriage report to local government. It was something different from ordinary Q&A session, because Mako was afraid of her mental uneasiness brought by some questions not based on truth. So, the event was actually one-sided speech to the reporters. Mako emphasized that the Kei’s decision of studying abroad five years ago had not been his original idea, but a result of her request to establish an over...
Read more