Kyoto City demands return of over 100 million yen and takes administrative action against facilities for disabled children

From NHK

October 11 2024

KYOTO – Kyoto City has demanded the return of a total of over 120 million yen and has taken administrative action, such as canceling the designation of the facilities, for two businesses that provided day care services for disabled children, for fraudulently receiving subsidies by making false reports.

The businesses that received administrative action from Kyoto City are Kyoto Prefecture Aozora-kai and Link Natural Japan, both of which are located in Shimogyo Ward, Kyoto City.

According to the city, the two businesses were managed by the same representative and provided day care services for disabled children and received subsidies from the city, but none of the seven facilities they operated in the city had full-time managers, as required by law, and falsely reported to the city that the staff were properly assigned.

After receiving a report from the relevant parties, the city investigated and found the fraud, and the city is demanding the return of over 122.9 million yen, including the fraudulently received subsidies and additional charges.
In addition, the designation of two of the seven facilities will be revoked from January next year, and five facilities will be administratively halted from accepting new users for a certain period of time.
Regarding the administrative sanctions, Kyoto Aozora-kai commented on its website, “The sanctions were caused by fraudulent claims made by the former management team, and the current management took over the corporation while keeping the wrongdoings secret, and only learned of the facts regarding the sanctions in February of this year. We take the administrative sanctions seriously, and will thoroughly comply with laws and regulations to ensure that we will never engage in wrongdoing again, and will work hard to rebuild our management.”