Kawasaki Heavy Industries Implicated in 1.7 Billion Yen Slush Fund Scandal Involving MSDF and Fraudulent Transactions

Dec 27, 2024, 08:45 AM

Kawasaki Heavy Industries has been implicated in a scandal involving the creation of a 1.7 billion yen ($11 million) slush fund through fraudulent transactions over six years. The funds were used to provide goods and meals to members of Japan's Maritime Self-Defense Force (MSDF). The issue came to light following an investigation by the Defense Ministry, which has now demanded the return of the excess funds. The fraudulent activities included bogus transactions with subcontractors, with the slush fund being utilized for purchasing items such as tools, appliances, and entertainment products for the MSDF personnel over the last six years. The Defense Ministry's interim report highlighted that Kawasaki Heavy Industries engaged in these practices for at least 40 years, with the most recent six years seeing the creation of the 1.7 billion yen fund.