Im Japan Asked To Investigate Favor Allegations
Japan's Cabinet Office has recommended that the country's largest agency for accepting foreign technical trainees investigate allegations that it granted favors to certain companies.
On Thursday, the Cabinet Office asked the Public Interest Foundation International Manpower Development Organization, Japan, or IM Japan, to carry out a thorough investigation and consider disciplinary action against executives. It also wants the agency to compile a detailed report of the probe.
A report issued by a third-party panel revealed that the agency gave preferential treatment for job placements and orders for supplies to a company run by a friend of the former president for about nine years through 2019.
IM Japan allegedly granted similar favors to other firms that had been referred by the friend of the former president.
The 77-year-old former president, Yanagisawa Kyoei, had previously worked for the labor ministry. The report says IM Japan paid the companies about 5.4 million dollars.
The report prompted the Cabinet Office to open a probe into the case and conduct onsite investigations. The Cabinet Office says the dealings in question may constitute a violation of the law banning public interest foundations from favoring specific companies.
The Cabinet Office says it may consider taking tougher measures, including issuing an order, while watching the progress in the agency's investigation.
IM Japan says it takes the recommendation seriously and will submit the required report by the designated date.
IM Japan was established in 1991. Its main source of revenue is training fees for technical trainees paid by about 2,000 member companies. Its revenue in fiscal 2020 was about 31 million dollars.