Kobe City: Fraudulent Receipt of Subsidy for Challenge Support for Small and Medium Businesses in Kobe City

Press Release (February 6, 2023)
Economic Policy Division
On February 10, 2022, the City of Kobe filed a complaint with the Hyogo Prefectural Police Headquarters in regards to suspected fraudulent receipt of the “Kobe City Small and Medium Business Challenge Support Subsidy,” which was provided to small and medium businesses in the city in fiscal year 2020 as support against the new type of Corona. On January 17, 2023, three persons were arrested by the Hyogo Prefectural Ikuta Police Station, and as a result of the subsequent investigation, two persons were re-arrested and another person was arrested today, February 6.

The two persons re-arrested today and the newly arrested person were arrested on suspicion of defrauding a

customer

of 1,000,000 yen in subsidies (fraud) by pretending to have purchased goods, etc., when they had not.

Response by the City

(1) Course of events to date
May 2021 Anonymous report to the City
June 2021 Investigation by the City and request for voluntary restitution and consultation with Hyogo Prefectural Police Headquarters
– January 2022
February 10, 2022 Criminal complaint to Hyogo Prefectural Police Headquarters (for failure to comply with request for voluntary restitution)
January 17, 2023 Three persons arrested by Ikuta Police Station
February 6, 2023 Two persons re-arrested and another person arrested by Ikuta Police Station, Hyogo Prefecture
(2) Future actions
We will continue to work closely with the police and other relevant agencies to deal strictly with suspected fraud. We will continue to make efforts to strictly examine applications and properly manage the execution of subsidies.

(Reference) Outline of the Kobe City Small and Medium Business Challenge Subsidy

Three-fourths (up to 1,000,000 yen) of eligible expenses will be subsidized for “new initiatives” such as business continuity, sales channel development, and new product and service development to overcome the spread of the new strain of H1N1 corona infection.
Application period: June 8-30, 2020
・Number of applications: 7,772 (6,177,643 thousand yen)
・Number of grants: 7,161 (5,082,204 thousand yen)
*In addition, the Ikuta Police Station in Hyogo Prefecture has released publicity materials regarding this matter today.