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Audit uncovers Ginoza nursing home embezzlement scheme

Date Posted: 2007-04-14

The chairman of a special nursing home for the elderly in Ginoza is being charged with taking public money for personal use.

Naotaka Hamada, chairman of Deigo House, a facility serving 105 aged people in Ginoza Village, has been arrested after an audit turned up serious accounting discrepancies in the use of public operations money assigned to the home. The audit of 2006 books revealed the missing money, as well as abuses and misuse of money for private purposes.

“We don’t know exactly about the chairman’s use of the money,” is the initial response from nursing home officials to the Prefecture inspector. He has been asking about a number of strange bookkeeping practices used by Deigo House. Officials report ¥530,000 ($4,608) is missing, based upon bookkeeping transactions.

Expenses totaling ¥3,027,000 are also being questioned as illegal or inappropriate, including Hamada’s taxi fares, entertainment allowances, medical fees, and money diverted to pay expenses of his private company.

Deigo House board of directors are studying what to do next. One officer says they may well take the missing and inappropriately used money, more than ¥3 million, from Hamada’s salary. “We’ll ask him,” a director told the Prefecture.

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