Japan town sues resident after $360,000 aid mix-up

A Japanese town that accidentally sent a resident almost $360,000 in financial aid says it is taking legal action after the recipient failed to give back the money.

The recipient of 46.3 million yen ($357,000) in coronavirus subsidies, which Abu, in Yamaguchi prefecture, mistakenly paid into a household bank account, said they cannot return the money, the town revealed last month.

“We’re sorry to cause trouble to residents ... We’re now suing this household,” an official from Abu told AFP. They said the decision would be approved at a council meeting to be held today.

The mishap occurred under the government’s scheme to distribute handouts of 100,000 yen (about $770) to low-income households to support families affected by the coronavirus pandemic.

Abu was supposed to pay the subsidies to 463 households. According to the town, on April 1 a treasury official gave a bank the names of 463 households that applied for the subsidies.

Five days later, the same town official mistakenly gave the bank a money transfer form that contained only one Abu household as the recipient. It had been printed out at the town hall.

As a result of the error, the head of that household received all of the money.

The applicant initially expressed their intention to return the money, but then the town became unable to contact them.

When the town was eventually able to reach them, on the night of April 21, the applicant reportedly said: “The money has already been moved elsewhere and can’t be returned. I’m not going to run and I’m willing to pay for my wrongdoing.”

“It’s extremely regrettable,” said town Mayor Norihiko Hanada. “We’ll make our utmost efforts to deal with the situation.”