Prosecutors raid Moritomo over fraud

Jun 20, 2017 | News On Japan

Jun 20, 2017 (NHK) - Prosecutors in western Japan have begun raiding the premises of school operator Moritomo Gakuen on suspicion it unlawfully claimed subsidies from the state and the Osaka prefectural government.

On-site investigations took place on a kindergarten operated by Moritomo on Monday.

The Osaka prefectural government earlier sued the former President of Moritomo Gakuen, Yasunori Kagoike, for fraud.

Prosecutors are likely to question Kagoike and others to find out whether he is criminally liable.

Prefectural officials have learned that Moritomo received about 550,000 dollars in subsidies over a period of 6 years ending in March 2017 by padding the number of students with disabilities and teachers.

Osaka prosecutors have also accepted a criminal complaint accusing Moritomo of illegally obtaining more than 500,000 dollars from the state to build a new elementary school.

Moritomo had planned to open the elementary school on former state-owned land in Osaka's Toyonaka city.

Its purchase of land, however, was called into question after a regional bureau of the Finance Ministry was found to have sold the plot significantly cheaper than its appraisal value.

Source: ANNnewsCH

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