Arresting School Chairman Close to Prime Minister

Special Investigation Department of Osaka Regional Prosecutors Office arrested former Chairman of Moritomo Gakuen, Yasunori Kagoike, and his wife, Junko, with suspect of fraud. They are suspected as submitting false estimation for building new elementary school in Toyonaka, Osaka. The prosecutors seem to be focusing not only on the fraud of Kagoike, but malpractice of Ministry of Finance.

According to news reports, Kagoike submitted a letter of contract with architect firms to receive subsidy for wooden buildings through Ministry of Land, Infrastructure, Transportation and Tourism in February, 2016. Kagoike is suspected as padding out the estimation of total contract to be ¥2,384.64 million, conspiring with the architect firms. The estimation was swollen by ¥110 million for architecting. Kagoike is supposed to have received ¥56.44 million of fraud money.

Both suspects have made three different documents of contract on December 3^rd last year. One was to Osaka Prefectural Government with estimation of ¥756 million. Another was ¥1,550 million to Kansai Airport, which was needed for subsidy for air conditioning system. The prosecutors office seems to have concluded that the true estimation was ¥1,550 million. Kagoike has explained that he made those three estimations after consulting with the executive offices. The prosecutors office is also investigating on a suspect of falsely receiving ¥62 million of subsidy for a kindergarten run by Kagoike.

The core of the issue is not about fraud of chairman of an educational corporation in Osaka. When Kagoike purchased the public land for new elementary school in Toyonaka, the price was discounted by ¥819 million. The reason was for the cost to remove debris found underground. It is ridiculous that the removal required such a great amount of money. Kinki Branch of Ministry of Finance was involved in the contract.

What makes the issue scandalous is that wife of Prime Minister Shinzo Abe, Akie, was the honorable principal of the new elementary school. Kagoike has named the school “Shinzo Abe Memorial.” While Abe denies his close relationship with the school, it is suspected that bureaucrats have admitted the discounted purchase as a political flattery to Prime Minister.

Kinki Branch has not disclosed actual price of selling the land out to Moritomo Gakuen. Ministry of Finance refused explaining the reason why they discounted the price of the land. The Ministry argued that they have scrapped the related documents. Abe administration refuses testimony of bureaucrats involved in the issue in the Diet. No one thinks that Abe administration does not conceal anything.