Japan Press Weekly

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2017 May 31 - June 6 [SOCIAL ISSUES]

4 companies monopolize controversial ‘My Number’-related contracts with local governments

Among tax expenditures that local governments in FY 2014-2015 used to improve their computer systems for the introduction of the controversial national ID system, more than 80% flowed to four major tech companies which had been involved in the technical design of the “My Number” system, Akahata reported on June 1.

In collaboration with the Japanese Communist Party assembly members’ groups in 20 major cities such as Osaka and Yokohama, Akahata surveyed the cities’ spending regarding the ID number system which went into full operation in January 2016 in defiance of strong public concern over privacy breaches. Between April 2014 and March 2016, the 20 city governments used a total of 20.6 billion yen in taxpayers’ money for improvements to their information systems.

Of the 20.6 billion yen, more than 80% was awarded to only four major electronics and information corporations: NEC, Fujitsu, Hitachi, and NTT. The four firms were involved in the technical design of the “My Number” system. When the government in 2011 set up a working group on technical issues concerning the launch of the system, executives of the four corporations were chosen as group members.

In addition, the four corporations monopolize “My Number”-related contracts not only at municipal levels but also the national level. They won 55 of 70 contracts that the national government placed after 2013.

Past related article:
> Ex-senior officials’ parachuting organ receives over 12.4 billion yen for ‘My Number’ system [November 9, 2016]