Govt Under Fire for Consignment of Relief Money Payment Work

Politics

Tokyo, June 2 (Jiji Press)--Japan’s opposition camp is stepping up its criticism of the government over outsourcing of operations to provide cash relief to businesses hit by the coronavirus crisis.

According to the industry ministry, the government has consigned the operations to an organization called the Service Design Engineering Council for 76.9 billion yen.

Then the group outsourced the operations to major advertisement agency Dentsu Inc. for 74.9 billion yen.

Deepening doubts about the 2-billion-yen difference between the two consignment deals, the Constitutional Democratic Party of Japan and other major opposition parties question why the government did not have Dentsu directly undertake the job to save the money.

The organization in question was set up in 2016 by companies including Dentsu, major staffing agency Pasona Group Inc. <2168> and digital services provider Transcosmos Inc. <9715>. Run by officials from the three companies, it has since won 14 contracts with the industry ministry.

[Copyright The Jiji Press, Ltd.]

Jiji Press