JR East Group Faces Fraud Accusations Over Fake Staff

May 31, 2025 | News On Japan

TOKYO - JR East Japan's group company has come under suspicion for overcharging labor costs in a government-commissioned project, claiming 65 people were working on a project while on 3 were involved.

According to JR East Japan Planning, a subsidiary of East Japan Railway Company, the firm falsely reported to the Agency for Natural Resources and Energy that 65 people were working on a disaster prevention infrastructure subsidy project during fiscal 2023. In reality, only three individuals were primarily involved in the project, while wages for the remaining 62 nonexistent staff were fraudulently claimed.

Further investigations suggest similar irregularities in 85 projects commissioned by 13 different ministries and agencies between fiscal 2019 and fiscal 2023.

Source: TBS

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