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The government signed a contract with an organization of experts connected to Deloitte to distribute the coronavirus relief bills following public anger over a previous deal related to Dentsu Inc. ‘s advertising.
Lawmakers and other critics questioned how taxpayers’ cash was being spent under the previous outsourcing regime and whether a small nonprofit had a front that would protect Dentsu from public scrutiny.
The contract for the time being circular of invoices awarded to Deloitte Tohmatsu Financial Advisory on August 14 for approximately 42. 8 billion yen, according to a document from the Ministry of Economy noted via Reuters on Thursday.
The first circular was awarded to the non-profit Service Design Engineering Council, co-founded through Dentsu, under a 76. 9 billion yen contract. The design of the service slashed the allocated budget by less than 1% before shifting the rest to Dentsu, which in turn contracted the paints to more than 60 companies, Reuters reported in the past.
Government officials said the variety procedure for service design and Dentsu was fair and legitimate, and that no preferential remedy had been granted.
Deloitte’s contract is smaller because fewer corporations would be eligible for payments, said an official with the Ministry of Economy, Trade and Industry who declined to be named because it is legal to speak to the media.
Dentsu has said in the past that it will not submit any offers for long-term projects from the economy ministry after the furore that followed the original contract.
Sachiyo Kikuchi, a spokesperson for Deloitte Tohmatsu Financial Advisory, said Deloitte plans to work with spouse corporations to manage the project, but declined to disclose details.
Deloitte submitted its candidacy in the first still lost to Service Design, the Ministry of Economy previously said.
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