OSAKA (TR) – Osaka Prefectural Police have arrested a 61-year-old site manager for major general contractor Takenaka Corporation after he allegedly forced subcontractors to inflate construction costs for the Osaka-Kansai Expo to fund his personal remodeling projects, reports the Sankei Shimbun (Aug.20).
Investigative sources revealed Thursday that Tatsumi Kawai is also suspected of having building materials, which were originally ordered by subcontractors for the Expo, diverted for use in his own private home renovations.
Kawai, who served as the general site manager for Expo-related construction, was handed over to prosecutors on Wednesday afternoon on suspicion of breach of trust. Police believe he heavily abused his position, which granted him the authority to select subcontractors, assess estimates, and determine final payment amounts.
Police did not reveal whether Kawai admits to the allegations.
60 million yen in personal benefits
Osaka-Kansai Expo extended from April 13 to October 13, 2025.
According to sources, starting around June 2023, Kawai hired a separate contractor to renovate his residence in Nara City, an apartment he owns, and a restaurant operated by a relative. The inflated costs billed to Takenaka Corporation by the Expo subcontractors were allegedly used to foot the bill for these private projects. Investigators estimate Kawai gained more than 60 million yen in personal benefits through the scheme.
The subcontractors pressured by Kawai were responsible for interior work on temporary offices at the Expo site, as well as the installation of toilets attached to the “Grand Roof Ring,” the massive wooden structure serving as the symbol of the event. Police suspect materials ordered specifically for these Expo facilities were secretly passed along to the contractors renovating Kawai’s properties.
Police do not believe the contractors who performed the private renovations were complicit in the fraud.
Ballooning budget
The specific arrest charges allege that between mid-February and early June of last year, Kawai repeatedly instructed subcontractors to falsify the quantity of parts, inflate labor costs, and bill for fictitious work, causing approximately 13.69 million yen in direct damages to Takenaka Corporation.
The scandal emerges amid ongoing public scrutiny over the event’s ballooning budget. According to the Japan Association for the 2025 World Exposition, the western section of the Grand Roof Ring was initially won by a Takenaka-led joint venture for about 17.5 billion yen. Following multiple increases, the contract amount had surged to approximately 35 billion yen by May of this year.
Police are currently questioning the representative of the subcontracting firm on a voluntary basis to uncover the full extent of the corrupt relationship.
Deeply regrettable
On Wednesday, Osaka Governor Hirofumi Yoshimura, who serves as vice-chairman of the Japan Association for the 2025 Osaka-Kansai Expo, commented at a press conference: “It is deeply regrettable. I expect Takenaka Corporation to deal with this matter strictly.”
He added, “It was Takenaka Corporation that suffered the loss; the Expo Association has incurred no damages.”
Regarding Takenaka Corporation’s participation in future public works tenders — such as the development of the Expo site on the artificial island of Yumenoshima — Yoshimura stated, “Based on the reports I have received, this is an individual’s crime. While any decision will be made in accordance with the rules, there is no impact on the situation at this moment.”
