Sendai suspends disability welfare provider over improper designation, benefit claims

By Barrier Free Japan

August 8 2026

Sendai City – The Sendai city government said on Friday 7th August that it has suspended the designation of a disability welfare service provider for three months after finding that the operator improperly obtained its designation and received benefits despite failing to meet staffing requirements.

The city said it took the administrative action against Kibidango Co., Ltd. under the Act on Comprehensive Support for the Daily and Social Lives of Persons with Disabilities.

The suspension of all of the company’s designated disability welfare services will run from Aug. 10 through Nov. 9.

The action concerns Carikaku Sendai Yaotome Station Office, a Type B continuous employment support facility operated by the company in Sendai’s Izumi Ward.

According to the city, Kibidango submitted information that differed from the facts regarding the working arrangements of its full-time employees when applying for designation of the facility in January 2026, resulting in the company improperly obtaining the designation.

The city also found that the facility failed to meet legally required staffing levels from January through March and improperly claimed and received training-related benefits without applying a reduction required when service providers fail to meet staffing requirements.

Sendai is seeking repayment of 14,896 yen, comprising 10,640 yen in improperly claimed benefits and an additional 4,256 yen penalty.

The facility has been suspended since May 20 and currently has no users, meaning the latest administrative action will not affect service users, the city said.