The Chiba prefectural government has detected accounting irregularities totaling ¥29.79 billion from fiscal 2003 through fiscal 2007. The irregularities were found at 383 — about 96 percent — of the prefectural government's sections, including the prefectural police.
Slush funds amounting to ¥418 million were created, and accounting manipulation in the form of cash, postal stamps and taxi tickets worth ¥44 million was detected in 86 sections. Unaccounted-for expenditures that may have been used for prefectural workers' private purposes amounted to ¥112 million. The Chiba prefectural government has determined that it lost ¥700 million through these irregularities.
The irregularities in Chiba were committed over a long period of time. It is regrettable that such an unethical culture has endured in some local governments. In July 2006, it was found that Gifu prefectural government workers had created a ¥1.7 billion slush fund. In February 2009, accounting irregularities totaling ¥1.49 billion were found in the Aichi prefectural government.
To create their slush funds, Chiba workers made it appear as if they had made purchases from companies. In reality, however, they pooled money at 39 firms. Other workers had companies deliver items that were different from those specified on invoices — such as personal computers instead of expendable stationary supplies.
Irregularities such as using money for unauthorized purposes in Chiba and other prefectures also occurred in the course of receiving subsidies from the central government. Many public servants justified their actions, citing the rule that requires surplus money to be returned to the central government each year. They should be reminded that falsifying public documents is a crime that deserves prosecution.
As devolution of central authority progresses, more money will go to local governments. But before this happens, it is imperative that firm rules be established to ensure that public money is used properly. To this end, outside auditing and full disclosure of information must be implemented.
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