The Japanese government has signed a contract with a Deloitte-linked consulting group to distribute coronavirus relief payouts following public anger over a previous deal involving advertising giant Dentsu .
FILE PHOTO: Offices of Deloitte are seen in London, Britain, September 25, 2017. REUTERS/Hannah McKay
Lawmakers and other critics questioned how taxpayers’ money was spent under the previous subcontracting scheme, and whether a small non-profit organisation was a front that would protect Dentsu from public scrutiny. The first round was contracted to the non-profit Service Design Engineering Council, co-founded by Dentsu, under a $718 million contract. Service Design took a less than 1% cut of the awarded funds before passing on the rest to Dentsu, which in turn subcontracted the work to over 60 companies, Reuters previously reported.
The Deloitte contract is smaller as fewer businesses would be eligible for payouts, said a METI official who declined to be named because he is not authorized to speak to the media.
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