Insurance agency overpaid NTT Data Corp. for contract without bidding

Another suspicion is surfacing concerning the Social Insurance Agency which is under fire for wasting pension premiums collected from people.

At the Upper House welfare committee meeting on November 16, Japanese Communist Party representative Koike Akira revealed that the Agency has placed orders with NTT Data Corporation for social insurance online systems without bidding for a contract and paid the company 890.2 billion yen in total since 1974.

The price was set so high that Welfare Minister Otsuji Hidehisa had to state, "It must not be left as it is. We'll look into the matter and report the findings to the Diet."

Koike also revealed that the rent of an operation center the Agency has at the NTT Data Corp. building is 119.65 million yen per month, which is far more expensive than rents at nearby offices.

Behind such cozy ties is the scheme of retired government officials systematically being given executive positions at private companies, Koike pointed out.

The former vice-director of the Social Insurance Agency, for example, is now senior vice president of NTT Data Corp. and the former chief of a health service bureau of the welfare ministry is an executive at NTT Data System Service Corp.

He demanded that the ministry thoroughly look into the matter and submit details about "contracts without bidding" and "ex-government officials taking company executive positions."

(Contract without bidding: Public works contractors are chosen through competitive biddings, but for a "contract without bidding", the government or local government can choose which companies to sign with. This only applies to a case with a very small price tag or for urgent needs. This type of contract is easily signed without negotiating price, thus providing an excellent opportunity for corruption. ) (end)

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