Hiroshima Revokes Designation of 7 Facilities for Disabled Children; Fraudulent Claims Affect 214

Extract from The Asahi Shimbun

March 3 2026

HIROSHIMA – Hiroshima Prefecture announced on Feb. 27 that it will revoke the designation of four facilities in Etajima City, including “Popo Etajima,” which serve children with disabilities. The revocation, due to fraudulent claims by the operator, will take effect on April 1. The city of Kure also announced it will take similar action against three facilities in the city operated by the same company. The total amount of fraudulent claims is about 260 million yen, affecting 214 children.

According to the prefectural government, the four facilities include “Popo Etajima” and the after-school day service “Arch Etajima.”

The operator, Popo (based in Kure), allegedly fraudulently claimed benefits for services for disabled children between April 2020 and February 2025, despite failing to meet the required staffing standards for child instructors and nursery teachers. Etajima City has demanded the company repay approximately 225 million yen, including penalty charges.

Kure City also announced that fraudulent claims were made at three facilities it operates, including the child development support and after-school day service center “Popo.” The city has demanded repayment of approximately 143 million yen, including penalty charges.

A total of 214 children attend the seven facilities whose designation will be revoked. As they will no longer be able to use the services from April 1, the prefectural government and other authorities are coordinating alternative placements.

The issue came to light after information was provided to Kure City in November 2024. Kimiko Sumihisa, the representative of the company, said in an interview, “We accepted children because we wanted to do something for those in front of us, and we ended up treating it as though we had the necessary staffing in place. We took the law too lightly, and I am deeply sorry.” The facilities are expected to be taken over by another operator.