Japan National Government Audits Welfare Corporation, Cracks Down on Fraud at Disability Facilities

By Barrier Free Japan with extracts from NHK & The Kobe Shimbun

October 25 2023

TOKYO – A company operating a group home in Minato Ward, Tokyo, is being audited by the national government and local governments for allegedly overcharging users of the home for food. The Ministry of Health, Labor and Welfare has notified Aichi Prefecture and other relevant local governments to confirm whether the company has been improperly billing local governments for disability welfare services.

A group home for persons with disabilities operated by Megumi Corporation, headquartered in Minato-ku, Tokyo, has been audited by the national and local governments for allegedly overcharging users for foodstuffs in violation of national standards.

The Kobe Shimbun reported on October 25th that the Hyogo Prefectural Police’s Organized Crime Divisio arrested a 65-year-old former service manager at Teresa, a Type B facility for continuous employment support and a 59-year-old former accountant in charge of accounting at a facility for the disabled in Ikeda City, Osaka Prefecture, on suspicion of fraud. The police have not revealed whether the two men have admitted to the crimes.

Under these circumstances, the Ministry of Health, Labor and Welfare (MHLW) has issued a notice to about 30 local governments nationwide, including Aichi Prefecture where the group home operated by this company is located, requesting that in addition to the foodstuff cost issue, they conduct audits to check records in case of suspicion of improper billing of compensation for welfare services for persons with disabilities, and in case of suspicion of abuse of persons with disabilities, they should thoroughly confirm the facts. In cases where abuse of a disabled person is suspected, a new notice requesting thorough confirmation of the facts was issued this month.

Regarding this company, Aichi Prefecture has revealed that there were also some irregularities in welfare project expenses that received public funds, and Noda City in Chiba Prefecture has found that “psychological abuse” was taking place at a group home in the city.

The Ministry of Health, Labor, and Welfare requires that when fraud or abuse is confirmed, administrative guidance and administrative punishment be appropriately implemented in accordance with the law.