Japan Press Weekly

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2012 March 21 - 27 [POLITICS]

‘Amakudari’ practice plays part in AIJ scandal

A network of “Amakudari”-bureaucrats has had a part in the spread of damage caused by AIJ Investment Advisory Co. losing 200 billion yen in smaller companies’ pension assets.

The Welfare Ministry on March 23 published an interim report on the state of retired bureaucrats gaining executive positions in corporations with the so-called “Amakudari” practice.

According to the report, 49 retired-government officials gained executive positions administering 47 out of 74 employee pension funds which entrusted their pension asset managements to AIJ. Retirees from the Welfare Ministry and the Social Insurance Agency accounted for 46 of the 47.

The Welfare Ministry issued a directive to the employee pension funds to carry forward with efforts to safeguard the assets. However, in respect to the return of investment funds, the ministry irresponsibly stated, “It is a private investment matter,” inviting an angry response from victims.