OSAKA (TR) — The darkish underbelly of Japan’s welfare system has been uncovered after an Osaka-based incapacity employment assist supplier was accused of illegally siphoning roughly 15 billion yen in authorities advantages, studies NHK (Apr. 224).
On March 27, the City of Osaka introduced the revocation of designations of 4 “Type A continuous employment support” services operated by Kizuna Holdings, efficient May 1. The metropolis is demanding the return of 11 billion yen — which incorporates penalties on the 7.9 billion yen Osaka alone paid out — and is contemplating submitting legal complaints.
Under the state’s welfare system, companies obtain a profitable bonus when disabled purchasers efficiently transition to common employment and stay employed for not less than six months.
However, Kizuna Holdings allegedly exploited a large loophole in what insiders dubbed the “36-Month Project.” The firm systematically “hired” its personal disabled purchasers as common workers for precisely six months to set off the huge authorities payouts. Once the bonus was secured, the people have been reverted again to “client” standing, solely to be recycled by means of the loophole once more.
Between 2024 and 2025, over 1,100 purchasers have been caught on this infinite loop throughout 75 municipalities in seven prefectures.
“It was welfare in name only, merely a scheme to suck up money,” one native official famous.
YouTube movies
The actuality contained in the services was much more grim. Former purchasers and workers revealed that no precise vocational coaching came about. Instead, disabled people have been left to “self-study,” which largely consisted of sitting in a room watching YouTube movies.
“I feel like we were just being used as pawns for them to fraudulently receive benefits,” an outraged former shopper mentioned. “I feel completely disgusted.”
Profit-driven
Meanwhile, firm executives allegedly lived lavishly off the scheme. A former worker advised reporters that the operation was purely profit-driven. “They bought more than two luxury tower apartments and drove sports cars using their executive compensation,” the worker revealed.
Following the town’s crackdown, Kizuna Holdings launched a press release apologizing for the state of affairs and saying the closure of the 4 services by the top of April. However, the corporate stays defiant, disputing that their strategies have been unlawful and vowing to struggle the executive resolution in courtroom.
With 15 billion yen lacking and lots of of weak people left with out real assist, the case has sparked widespread outrage and requires the federal government to shut the loopholes in its incentive-heavy reward system.