Osaka city files criminal complaint against Kizuna Holdings over ¥15 billion in fraudulent disability employment support funds

Extract from News NTV

May 1 2026

OSAKA – The city of Osaka has filed a criminal complaint against the operating company of Kizuna Holdings (HD), which had been subject to administrative sanctions for fraudulently receiving approximately ¥15 billion in disability employment support benefits. As of the 1st, the city has also revoked the designation of the company’s facilities.

Four facilities affiliated with Kizuna Holdings were found to have improperly received “additional payments” (supplementary subsidies) provided by the national and local governments for the purpose of supporting employment for people with disabilities. In March this year, Osaka City imposed administrative penalties, and as of the 1st, revoked the facilities’ official designation.

The repayment has not been made by the deadline, and the city is seeking the return of about ¥11 billion. On April 30, it filed criminal complaints against both the operating company and the facilities.

Meanwhile, on April 30, the operating company released a video on its website in which it apologized, but also stated that there are “differences in interpretation” regarding the alleged fraudulent claims. It has filed a lawsuit against the city and plans to contest the matter in court.

Hiromi Shimokawa, President of Kizuna Holdings:

“Regarding the revocation of designation and the points deemed fraudulent, we will appropriately present our arguments in a legal forum and respond in good faith.”

Kizuna Holdings has decided to close the four facilities whose designations were revoked. For users who have not yet been transferred to new providers, the company says it will continue to offer support.