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October 31, 2012

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Audit: Japan's rebuilding money misused

ABOUT a quarter of the US$148 billion budget for reconstruction after Japan's March 2011 tsunami and nuclear disaster has been spent on unrelated projects, including subsidies for a contact lens factory and research whaling.

The findings of a government audit buttress complaints over shortcomings and delays in the reconstruction effort. More than half the budget is yet to be disbursed, stalled by indecision and bureaucracy, while nearly all of the 340,000 people evacuated from the disaster zone remain uncertain whether, when and how they will ever resettle.

Many of the non-reconstruction-related projects loaded into the 11.7 trillion yen (US$148 billion) budget were included on the pretext they might contribute to Japan's economic revival, a strategy that the government now acknowledges was a mistake.

"It is true that the government has not done enough and has not done it adequately. We must listen to those who say the reconstruction should be the first priority," Prime Minister Yoshihiko Noda said in a speech to parliament on Monday.

But ensuring that funds go to their intended purpose might require an explicit change in the reconstruction spending law, which authorizes spending on such ambiguous purposes as creating eco-towns and supporting "employment measures."

Among the unrelated projects benefiting from the reconstruction budgets are: road building in distant Okinawa; prison vocational training in other parts of Japan; subsidies for a contact lens factory in central Japan; renovations of government offices in Tokyo; aircraft and fighter pilot training, research and production of rare earths minerals, a semiconductor research project and even funding to support whaling, ostensibly for research, according to data from the government audit.

A list of budget items and spending shows some 30 million yen went to promoting the Tokyo Sky Tree, a transmission tower that is the world's tallest freestanding broadcast structure. Another 2.8 billion yen was requested by the Justice Ministry for a publicity campaign to "reassure the public" about the risks of big disasters.

Masahiro Matsumura, a politics professor at St. Andrews University in Osaka, said justifying such misuse by suggesting the benefits would "trickle down" to the disaster zone is typical of the political dysfunction that has hindered Japan's efforts to break out of two decades of debilitating economic slump.

"This is a manifestation of government indifference to rehabilitation. They are very good at making excuses," he said.

Near the crippled Fukushima Dai-Ichi nuclear plant, recovery work has barely begun.

More than 325,000 of the 340,000 people evacuated from the disaster zone or forced to flee the areas around the nuclear plant after the disaster remain homeless or away from their homes, data shows.




 

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