Overview

• An Osaka Regional Taxation Bureau audit led to a special Defense Ministry inspection in July 2024 into JMSDF submarine repair procurements.
• Investigators found Kawasaki Heavy Industries fabricated subcontracting deals to generate about ¥1.7 billion in unreported slush funds through fiscal 2023.
• Thirteen submarine crew members accepted private goods valued at approximately ¥1.4 million from shipbuilders over the course of the scandal.
• Admiral Saito received a one-month 10% salary reduction and 92 other service members were disciplined for failures in command supervision.
• The ministry opted not to suspend contracts with the four involved shipbuilders and has pledged comprehensive reforms to procurement procedures and ethics oversight.