Tsunami Reconstruction Scandal in Japan

The recovery from disasters like Hurricane Sandy can last for years.

A scandal is gripping Japan right now over the earthquake and tsunami that devastated that country in March 2011.

Japan set aside $239 billion for reconstruction.

But independent audits now show that much of that money — perhaps a quarter — has been diverted into pork-barrel projects, far away from the disaster zone.

These include millions diverted to update the National Stadium in Tokyo and to repair roads in Okinawa.

Neither of these were affected by the disaster.

Money has also gone to subsidize a contact lens factory, and to assist Japan’s whaling fleet fend off environmental activists in the Arctic Ocean.

At the same time, businesses and public institutions like hospitals in the disaster area have been denied money.

Hiroko Tabuchi of The New York Times says there’s a lot of anger in Japan over the issue.

But the government insists it’s doing nothing illegal, since the law authorizing the funds calls for revitalizing Japan.

Tabuchi says people did not expect the money to be diverted so far away.

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Lisa Mullins: The recovery from disasters such as Sandy can last for years. A scandal is gripping Japan right now over the earthquake and tsunami that devastated the country in March of last year. Japan set aside $239 billion. It was for reconstruction, but independent audits now show that much of that money has been diverted into pork barrel projects far away from the disaster zone. Hiroko Tabuchi has been covering the story for The New York Times. How much money here are we talking about?

Hiroko Tabuchi: Well, we still haven’t gotten full accounting of the entire reconstruction budget, which as you said is nearly $239 billion. But independent researcher who audited about half of that amount found that of that half, a quarter had been diverted to projects that seemingly have nothing to do with reconstruction or were even spent in the disaster zone.

Mullins: Such as what?

Tabuchi: For example, there was money diverted to fix the Olympic Stadium in the middle of Tokyo. We also saw about 500 million yen or $6.3 million being spent to build roads in Okinawa, which is over a thousand miles from the disaster zone.

Mullins: Where else has the money gone?

Tabuchi: Well one of the more controversial programs that the funds have been diverted to is Japan’s railing program. Japan does what it calls scientific railing, so the government has diverted almost $30 million to help protect Japan’s railing needs from the environmentalists. And this has critics both within Japan and overseas asking how this has anything to do with the reconstruction.

Mullins: You know, let me ask you, with the government’s responses to these charges, and by the way I imagine that people, especially in the disaster area are pretty angry, is that what you heard?

Tabuchi: Yes, there has been a lot of public anger, especially in the disaster zone.

Mullins: So what does the government say in response?

Tabuchi: The government has basically said that the disaster that Japan faced last year is a national crisis and so Japan as a nation has to yeah, has to rebuild. And as you might know, Japan over the last 20 years, its economy has been stagnating, and so from the government’s point of view it would like to not just kickstart growth again in the disaster zone, but also use some of that money to bolster the economy elsewhere.

Mullins: Kind of like a stimulus, is that illegal in Japan, what’s happening?

Tabuchi: No, it’s actually not illegal. None of this spending is actually illegal because the government made the laws [inaudible 02:37], the law says that the funds can go to measures to basically revitalize Japan. And that can be interpreted in a very broad way. So none of this spending is technically illegal. However, some of the projects that we’ve seen, I mean the public I don’t think expected the projects to be this unrelated to reconstruction.

Mullins: Is there a reason for any donors from other countries, including the United States to be concerned here?

Tabuchi: In any disaster there’s always a question of how much of the aid that often pours in from overseas is spent efficiently and is reaching the people who most need it. And in Japan’s case I don’t think there has been comprehensive accounting of all the aid that poured into Japan after the disasters. We’ll see whether the anger over spending of Japanese taxpayers’ dollars somehow sparks a call for better accounting of the aid that Japan receives. We’ve yet to see that though.

Mullins: Hiroko, I just wonder if these people in Japan who still have the memory of the earthquake, and tsunami and earthquake disaster in their minds, is there any way that they’re paying attention to Hurricane Sandy, what’s happening here?

Tabuchi: Yes, actually a lot of the images that we got from New York of all the water pouring into the subways and you know, over break waters, that kind of thing, I think it reminded a lot of Japanese of the tsunami coming in. And so there has been a lot of concern. I mean I think the Japanese believe that compared to the tsunami the deaths and damage doesn’t seem as big, but yeah, there was a lot of concern here.

Mullins: Hiroko Tabuchi of The New York Times, speaking to us from Tokyo, thanks.

Tabuchi: Thank you.

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