Japanese Eateries Fraudulently Got ¥500-M In Pandemic Subsidies

Fraudulent claims for coronavirus pandemic-related subsidies worth more than ¥500 million had been identified as of September, the Yomiuri Shimbun reported.

Photo Insert: With prefectures still receiving information about fraudulent claims, it is thought that the amount uncovered so far is just the tip of the iceberg.

Eateries that closed or shortened their business hours to mitigate the spread of COVID-19 in areas subject to emergency or quasi-emergency restrictions were eligible to receive the support.

Since April 2021, businesses have been able to receive up to ¥200,000 per day, depending on sales. To receive the subsidy, eateries were required to implement infection-prevention measures, such as improving ventilation and installing partitions.

Eateries that fraudulently claimed they had implemented measures were also found to have received subsidies. Prefectural governments have asked all eateries that fraudulently received handouts to return the money.

However, more than ¥300 million has yet to be returned. With prefectures still receiving information about fraudulent claims, it is thought that the amount uncovered so far is just the tip of the iceberg.

The financial assistance was meant to help eateries that observed prefectural requests to close or shorten their hours, amid concerns that businesses could go bust.

The Yomiuri Shimbun asked all prefectures about the subsidy payments and found that, as of the end of September, in at least 561 cases, ¥503 million in subsidies was received by establishments that submitted fraudulent declarations at the time of their applications in 20 prefectures.

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