Three municipalities in Aichi accuse ‘Megumi’ Corporation of “economic abuse” of people with disabilities over excessive collection of food costs

By Barrier Free Japan, extract from The Asahi Shimbun

February 5 2024

AICHI – Three cities and towns in Aichi Prefecture, including Koda Town, Aichi Prefecture, have accused Megumi (Headquarters, Tokyo) of a major management company of group homes (GHs) for people with disabilities of overcharging food costs. This is the first time that financial abuse has been found in a series of issues, Governor Hideaki Omura stated in an announcement at a press conference on February 5th. According to Governor Omura, by the end of last year, there were reports that two other cities in the prefecture had recognized economic abuse. Details were not disclosed.

According to a prefectural audit, the GH “Fuwafuwa Koda” in Koda Town has over-collected about 12 million yen in food costs from 25 users since its opening in July 2020. Although they collected 28,000 yen per person per month, it was revealed that only about 7,500 yen per month was actually spent on meals.

The town determined that the act of charging three times more than the actual cost of ingredients, contrary to national standards, constituted economic abuse (unjust enrichment by a business operator) as stipulated by the Act on Prevention of Abuse of Persons with Disabilities. The company reportedly requested the West Japan branch office (Nagoya City) to submit an improvement plan on February 2.

It has been confirmed that 26 Megumi-affiliated GH offices in the prefecture have been over-collecting by a total of approximately 218 million yen.