An investigation by the Board of Audit of Japan into fraudulent receipts of COVID-19-related labor subsidies and benefits found that approximately ¥3.7 billion became unrecoverable due to the statute of limitations and other factors during fiscal 2019 through fiscal 2024, while approximately ¥74.7 billion remained unrepaid.
The Board of Audit of Japan investigated fraudulent receipts of COVID-19-related labor subsidies and benefits. The total amount that became unrecoverable during fiscal 2019 through fiscal 2024 was approximately ¥3.7 billion (1,017 cases). The government has treated the amount as uncollectible for accounting purposes because it is not expected to be recovered.
The investigation covered fraudulent receipts of employment-related subsidies and benefits created as COVID-19 measures, including employment adjustment subsidies, emergency employment stabilization subsidies, leave support payments and leave benefits. Employment adjustment subsidy payments totaled approximately ¥4.2 billion in fiscal 2019, approximately ¥3.2789 trillion in fiscal 2020 and approximately ¥6.8725 trillion during fiscal 2019 through fiscal 2024.
Unrepaid amounts totaled approximately ¥74.7 billion (approximately 18,000 cases) as of the end of fiscal 2024. In addition, approximately ¥3.7 billion in total could not be recovered during fiscal 2019 through fiscal 2024 due to the statute of limitations and other factors. Among 13 labor bureaus nationwide, cases involving improper procedures for sending demand notices or renewing the statute of limitations were identified, covering ¥10.4 billion (1,046 cases).
The Ministry of Health, Labour and Welfare commented that it is considering measures including outsourcing collection-demand work and enhancing training.