TOKYO (Reuters) – 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 <4324.T>.
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 contract for the second round of payouts was awarded to Deloitte Tohmatsu Financial Advisory on Friday for about 42.8 billion yen ($404 million), according to a Ministry of Economy, Trade and Industry (METI) document seen by Reuters on Thursday.
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