Some submarine crew members of Japan's Maritime Self-Defense Force are suspected of receiving money and gifts from a company that received orders for maintenance work, the Defense Ministry said Wednesday.
The company, Kawasaki Heavy Industries Ltd., said billions of yen may have been misappropriated by personnel at its factory in Kobe under the guise of transactions with subcontractors and that the fraud began at least six years ago to lavish gifts and money on MSDF submarine crew.
If the suspicions are confirmed, the crew involved could face disciplinary action under the law.
A ministry official said they "are proceeding with an investigation to clarify the whole picture," adding that they will release the investigation results when they are finalized.
The financial misconduct at Kawasaki Heavy came to light after tax authorities inspected the company. The major manufacturer informed the ministry in April.
Kawasaki Heavy has produced 12 submarines for the MSDF, about half of its subs, and carries out their maintenance work, including regular overhauls conducted every three years.
The related contracts in recent years between the firm and the ministry are worth more than 10 billion yen ($62 million) per year, according to the ministry.
