Japan tightens procurement rules after outcry over Covid relief spending

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Japan’s trade ministry unveiled a raft of public procurement reforms on Friday following an outcry over a deal to disburse coronavirus relief to struggling businesses that involved powerful advertising agency Dentsu Inc, Reuters reports.

The Ministry of Economy, Trade and Industry (METI) said the new rules aimed for greater transparency in its dealings with bidding entities and their audit and subcontracting networks, as well as on cost breakdowns and other aspects of procurement.

The changes, proposed by a panel of auditors and following months of deliberations, would apply to METI’s spending, starting with its portion of a $200 billion extra budget passed this month that includes new Covid-related subsidies.

The ministry launched the probe after lawmakers and experts questioned how taxpayers’ money was spent under the coronavirus relief scheme, and whether a small non-profit entity that won the contract to disburse the funds was a front that would shield Dentsu, part of Dentsu Group Inc, from public scrutiny.

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