Disabled Service Users at Employment Facility Exploiting Benefit Loopholes “felt something like guilt”

By Barrier Free Japan

April 4 2026

OSAKA – Amid support programs for the employment of people with disabilities, an unprecedented case of fraudulent benefit claims by an Osaka-based company has come to light. The total amounts to ¥15 billion, funded, of course, by taxpayers. Based on interviews with those involved, TBS looked at the scheme behind this massive fraud.

According to the Osaka city government, four affiliated Type A continuous employment support facilities fraudulently received approximately ¥15 billion in subsidies from the national government and other sources.

Type A facilities are workplaces where people with disabilities can work while receiving support.

The aim is to allow individuals to work at their own pace, such as through reduced hours, and to develop skills for transitioning into “regular employment.” On average, these facilities receive about ¥200,000 per user per month in subsidies.

More than 50 people, including former users and staff from facilities affiliated with Kizuna Holdings were interviewed.

One of them, A, is a person in their 20s with a developmental disability.

After seeing a website advertising that users could learn skills such as video editing and manufacturing, A began attending the facility in April 2025.

Former user A:

“There were times when it just felt like watching videos at home to learn PC skills. I didn’t really feel like I was earning anything, so I even felt something like guilt.”

A says they were mostly instructed to do self-study or data entry, with no support that led to real skill development.

Another former user said she was assigned tasks such as creating traffic safety posters:

Former female user:

“Other users were making the same things too, and we never knew whether they were accepted or rejected. It just felt like we made them and that was it. I’ve always wondered whether the company intentionally created these fake tasks just to kill time.”

When asked how they felt about the license being revoked, one user said:

“It feels like the inevitable finally happened. There was hardly any explanation that I could accept.”

“I think it’s irresponsible. I’m very worried about whether we’ll properly receive our wages for March and April, and about how we’ll manage going forward.”

Kizuna Holdings responded to TBS’s JNN stating:

“While there are aspects that differ from our own understanding, we are taking the administrative decision very seriously at present.”

Osaka city Mayor Hideyuki Yokoyama stated:

“This is an extremely serious situation that could undermine trust in the system. These are valuable taxpayer funds, so we have no choice but to impose strict penalties, and we intend to respond with firm resolve.”