Osaka-based Employment Support Agency Fraudulently Received Subsidies from 76 Municipalities

By Barrier Free Japan

April 13 2026

OSAKA – A problem has emerged in which business offices under the umbrella of the welfare-related company “Kizuna Holdings (HD)” in Osaka City are suspected of fraudulently claiming additional payments for employment support for people with disabilities. On March 27, the city announced audit results stating that at least four affiliated offices had improperly received approximately 15 billion yen.

It is said that they abused a system intended to promote stable employment, receiving about 7.9 billion yen from Osaka City and about 7.1 billion yen from 75 other municipalities, mainly in the Kansai region.

Osaka City has decided to revoke the designation of the four offices effective May 1. Including penalty charges under the Comprehensive Support for Persons with Disabilities Act, the city has requested the return of a total of approximately 11 billion yen. Other local governments are also expected to seek repayments in the future.