PROCUREMENT NEWS

Japan : Japan suspends dubious reconstruction projects

Published 29 Nov 2012

Japan\'s government has suspended 35 projects included in a budget for reconstruction from the March 2011 earthquake and tsunami after criticism the spending was not directly related to recovery from the disasters.

As much as a fourth of the 11.7 trillion yen (US$148 billion) budget had been earmarked for unrelated projects, including subsidies for a contact lens factory in another region and research whaling.

However, the 35 projects put on hold during a meeting chaired by Prime Minister Yoshihiko Noda involved spending of only 16.8 billion yen.

No specific reason was given for each project, though Noda and other officials have vowed to cut spending not directly for reconstruction. Many of the projects in the budget were included on the pretext they might aid Japan\'s economic revival.

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