OSAKA - A Takenaka Corp. construction manager who oversaw work on the Grand Ring and other facilities at the Osaka-Kansai Expo was arrested on August 19 on suspicion of causing more than 13 million yen in losses to the major contractor through inflated construction bills, with police investigating allegations that money from the scheme was used for renovations to his home and a cafe operated by relatives.
Tatsumi Kawai, an employee of Takenaka who served as the overall site manager for Expo-related construction, was arrested on suspicion of breach of trust.
Police allege that Kawai instructed a subcontractor working on the Expo project to bill Takenaka for renovation work at his home and other properties, including a cafe operated by relatives, by disguising the expenses as costs related to Expo construction.
Investigators suspect fictitious labor costs and inflated material prices were used to have Takenaka improperly pay a total of about 13.69 million yen.
Police conducted simultaneous searches of locations connected to the case on August 19, including Kawai's home, Takenaka's headquarters building in Osaka and a restaurant operated by one of his relatives.
Police have not disclosed whether Kawai has admitted or denied the allegations.
The case has drawn attention because of Kawai's prominent role in construction of the Osaka-Kansai Expo, which closed nearly a year ago after attracting more than 29 million visitors during its six-month run.
Construction costs for the Expo site repeatedly increased because of factors including rising material prices, eventually reaching 235 billion yen, about 1.9 times the original estimate.
Takenaka was responsible for construction in the western section of the Expo site, including part of the Grand Ring, the wooden structure that became the event's most recognizable symbol.
As overall site manager, Kawai was responsible for Expo construction operations and handled matters including orders and the examination of estimates. He also effectively had authority to select subcontractors, according to investigators.
Kawai frequently appeared publicly in connection with the project, including at a ceremony marking the Grand Ring's recognition by Guinness World Records as the world's largest wooden architectural structure.
Before the Expo opened, he also spoke publicly about efforts to improve working conditions at the Yumeshima construction site, including the introduction of a mobile convenience store because workers otherwise faced long walks to the limited shopping facilities available on the island.
Police are now examining whether Kawai abused the authority he held over subcontractors.
Investigators believe money generated through the allegedly inflated billing was used to cover work at his home. Photographs of the property from six years ago compared with its current appearance indicate extensive renovations involving large amounts of wood on the exterior.
Police said renovation work on Kawai's home and other properties began around June 2023 and totaled more than 60 million yen.
Takenaka filed a criminal complaint against Kawai and others in April. The company said it takes the matter extremely seriously and will deal with the situation strictly after confirming the facts.
Osaka Governor Hirofumi Yoshimura described the arrest as "extremely regrettable" because it involved construction connected to the Expo and called on Takenaka to respond firmly.
Asked whether the case could affect future Osaka redevelopment or projects on Yumeshima, Yoshimura said eligibility to participate in bidding is governed by established rules and would depend on whether the relevant conditions apply. He said he did not currently expect the case to have an impact on those projects.
The investigation began after police received information about possible misconduct in February.
Over roughly six months, investigators examined Kawai's activities and a large number of subcontractors connected to Takenaka's Expo work before concluding that there appeared to have been an improper flow of funds.
Police are also voluntarily questioning a civil engineering and construction company in Nara Prefecture believed to have been involved in the case. Investigators are expected to examine whether the contractor received any preferential treatment in return for its cooperation.
The searches on August 19 extended to Takenaka's headquarters, and police plan to analyze seized materials to determine how the alleged inflated claims were approved, what payment procedures were followed and what internal checks were in place.
Investigators are also tracing the detailed flow of funds as they seek to establish the full scale and structure of the suspected scheme.
Source: KTV NEWS
