Corruption in Japan remains a serious concern for the country. Japan has seen significant cases of corruption scandals throughout its history. Cases of corruption have been classified into three: bad-apple corruption, standard-operating-procedure corruption, and systemic corruption. [1] Corrupt practices include bribery, political donations, and those involving the “amakudari”, among others. There were also high-profile incidents of corporate malfeasance.
Through the years, the Japanese government has taken steps to address corruption through reforms and statutes. Transparency International’s Corruption Index for 2023 had placed Japan at the 16th position with a score of 73, a rating it has maintained since 2021. [2]
There were documented corruption cases during the Meiji Restoration period in the late 19th and 20th centuries. Japan, in this period, had been undergoing rapid industrialization. This entailed the emergence of Japanese conglomerates called zaibatsu , or the Japanese cliques. [3] [4] The growth of these companies was encouraged by the government in a bid to drive economic development. Close relationships between zaibatsu leaders and government officials became the norm and this resulted in a culture of corruption. This led to the heavy influence of the zaibatsu’s interests on policy decisions and regulatory frameworks. [5]
The first major corruption scandal in Japan was the Nitto case, which transpired in 1909. Representatives of the Nitto company bribed politicians in order to influence legislation covering the sugar industry. [6] This resulted in the successful passage of laws involving tax on sugar products. The company then wanted to establish a national sugar company. When this failed, Nitto fielded its own candidates during the parliamentary election. After its bribery and corrupt practices were revealed, Nitto’s executives and members of the parliament were investigated and prosecuted. [6] Prosecutors took the lead in the investigation instead of the police, also a first in Japan.
One of the most notable corruption cases during the 1920s was the Mitsui zaibatsu scandal. It was widely known that this conglomerate offered financial assistance to party politicians as well as government regulators in exchange for favorable treatment. [7] Accounts indicate that Mitsui’s bribery practices extended well into the 1930s. This is demonstrated in the case of Ariga Nagabumi, Mitsui’s managing director. He was recorded to have contributed to the representatives of the Cherry Blossom Society and had continued to make bribery payments to politicians such as Kita Ikki. [8] Ikeda Seihin, his successor, would continue this practice, bribing not only political figures but also army officers. [8]
One of the biggest corruption scandals in modern Japan involved Lockheed Martin in 1976. Previously, in a move to secure overseas aircraft contracts, the American company had set aside $25 million for bribery. [9] During a Senate investigation in the U.S., it was revealed that several Japanese officials received payoffs and these included Kodama Yoshio. It was reported that he was given $7 million to curry favor and secure favorable deals, which included the All-Nippon Airways’ purchase of the Lockheed Tri-Star jets. [9]
Amakudari is a Japanese patronage system that emerged during World War II when the government started to regulate the economy to support its war efforts. Companies started employing bureaucrats to anticipate future government policies and also to lobby for their business interests. [10] This practice involves former high-level bureaucrats migrating to high-profile positions in both private and public sectors. There are cases when companies would promise positions to public officials in exchange for favors. The system has been associated with corruption since these individuals – through their government position, influence, and networks – can facilitate bid-rigging, inspection avoidance, and the circumvention of traditional expectations of transparency and fair play. [11] [12]
Amakudari persists today. A report by the Japan Times in 2011, for example, cited that 68 former government officials have found senior employment positions in the country’s 12 electricity suppliers via amakudari in the past 50 years. [12]
The following are some examples of corruption cases involving amakudari:
Corruption in Japan is not only confined to cases implicating government officials. There were also instances of corporate malfeasance such as the Olympus Corporation’s accounting fraud in 2011, which was perpetrated to hide losses amounting to $1.7 billion. [16] The misconduct, which was perpetrated by top executives, was revealed by the company’s CEO Michael Woodford. [17] The company also admitted that it hid losses for over two decades. [17]
In 2023, four ministers of Prime Minister Fumio Kishida’s cabinet resigned after a scandal erupted involving the Liberal Democratic Party (LDP). Several LDP politicians particularly those who belong to the so-called Abe faction (named after former prime minister Shinzo Abe), were accused of pocketing excess funds received at fundraisers and funneling the money into slush funds. [18] Investigators raided its office and of one other faction, the Nikkai group. [18] Authorities also investigated four other factions within LDP including the incumbent Prime Minister’s faction.
In response to corruption challenges, Japan has instituted anti-corruption measures that include legal reforms, corporate responsibility, and collaborative initiatives. The current system features an approach that focuses on prevention and transparency.
Before World War II, anti-corruption measures were led by prosecutors, who enjoyed strong public support. To ensure their independence, the power to appoint the Prosecutor General was transferred from the Cabinet to the Emperor. [6] By 1947, a special division was established to investigate misappropriation cases within the Tokyo District Prosecutors’ Office. This later became the Special Investigation Department, which became in charge of economic crimes, tax evasion, and corruption cases. [6]
The modern legal framework that addresses corruption in Japan is composed of the Unfair Competition Prevention Act (UCPA) and Japan’s Penal Code. The former outlines the prohibition covering corruption and bribery while the latter provides the penalty for violations committed by public officials. Japan also established mechanisms for transparency and whistleblower protection. [19]
The emphasis on prevention and transparency can be demonstrated in the anti-corruption approach of Japan’s Official Development Assistance (ODA) agency. It has a Consultation Desk on Anti-Corruption, which addresses fraud and corruption involving Japan’s ODA initiatives. Violators of the ODA’s measures face exclusion from ODA’s projects. [20]
Japan had also amended and strengthened its anti-bid-rigging laws after the scandals during the 2000s. Reports showed that, by 2009, these reforms were effective and had led to a substantial decline in noncompetitive bidding. [21]
Bribery is the offering, giving, receiving, or soliciting of any item of value to influence the actions of an official, or other person, in charge of a public or legal duty and to incline the individual to act contrary to their duty and the known rules of honesty and integrity. With regard to governmental operations, essentially, bribery is "Corrupt solicitation, acceptance, or transfer of value in exchange for official action."
Police corruption is a form of police misconduct in which law enforcement officers end up breaking their political contract and abusing their power for personal gain. This type of corruption may involve one or a group of officers. Internal police corruption is a challenge to public trust, cohesion of departmental policies, human rights and legal violations involving serious consequences. Police corruption can take many forms, such as: bribery, theft, sexual assault, and discrimination.
The Corrupt Practices Investigation Bureau (CPIB) is an independent agency of the Government of Singapore responsible for the investigation and prosecution of any possible serious or complex fraud and corruption in Singapore. The CPIB has the mandate to investigate into any acts or forms of corruption in the public and private sectors in Singapore, and in the course of doing so, any other offences under any written law, with the powers of arrest.
Corruption in the government of Kenya has a history which spans the era of the founding president Jomo Kenyatta, to Daniel arap Moi's KANU, Mwai Kibaki's PNU governments. President Uhuru Kenyatta's Jubilee Party government, and the current William Ruto's Kenya Kwanza administration has also been riddled with massive cases of graft.
Political corruption in Ghana has been common since independence. Since 2017, Ghana's score on Transparency International's Corruption Perceptions Index has improved slightly from its low point that year, a score of 40 on a scale from 0 to 100. Ghana's score rose to 43 by 2020 and has remained there until the present, 2023. When ranked by score among the 180 countries in the 2023 Index, Ghana ranked 70th, where the country ranked first is perceived to have the most honest public sector. For comparison with worldwide scores, the best score was 90, the average score was 43, and the worst score was 11. For comparison with regional scores, the average score among sub-Saharan African countries was 33. The highest score in sub-Saharan Africa was 71 and the lowest score was 11.
The Philippines suffers from widespread corruption, which developed during the Spanish colonial period. According to GAN Integrity's Philippines Corruption Report updated May 2020, the Philippines suffers from many incidents of corruption and crime in many aspects of civic life and in various sectors. Such corruption risks are rampant throughout the state's judicial system, police service, public services, land administration, and natural resources.
Corruption in Pakistan is widespread, and extends to every sector from government to judiciary, police, health services, education, and military.
While hard data on corruption is difficult to collect, corruption in Indonesia is clearly seen through public opinion, collated through surveys as well as observation of how each system runs.
Corruption is rife in Papua New Guinea (PNG). According to The Economist, "PNG's governments are notorious for corruption, and ever run the risk of turning the state into a fully-fledged kleptocracy".
Corruption in Italy is a major problem. In Transparency International's annual surveys, Italy has consistently been regarded as one of the most corrupt countries in the Eurozone. Political corruption remains a major problem particularly in Lombardy, Campania and Sicily where corruption perception is at a high level. Political parties are ranked the most corrupt institution in Italy, closely followed by public officials and Parliament, according to Transparency International. But in the 2013 Global Corruption Barometer report, Italy is in 17th position in front of the United Kingdom (18th), Switzerland (21st) and the United States (22nd).
Corruption in France describes the prevention and occurrence of corruption in France.
Corruption in Romania has decreased in recent years. In particular since 2014, Romania undertook a significant anti-corruption effort that included the investigation and prosecution of medium- and high-level political, judicial and administrative officials by the National Anticorruption Directorate. The National Anticorruption Directorate was established in 2002 by the Romanian government to investigate and prosecute medium and high-level corruption related offenses, using a model of organization inspired by similar structures in Norway, Belgium and Spain. Adrian Zuckerman, the US Ambassador in Romania, has stated in 2021 that "the rule of law has been strengthened in Romania". Since 2022, the effectiveness of the investigation and sanctioning of high-level corruption further improved, including by advancing on cases that had been pending for years for procedural reasons.
Corruption in Sweden has been defined as "the abuse of power" by Swedish National Council for Crime Prevention (Brå). By receiving bribes, bribe takers abuse their position of power, which is consistent with how the National Anti-Corruption Unit of the Swedish Prosecution Authority specifies the term. Although bribes and improper rewards are central in the definition of corruption in Sweden, corruption in the sense of "abuse of power" can also manifest itself in other crimes such as misuse of office, embezzlement, fraud and breach of trust against a principal.
Corruption in Uzbekistan is a serious problem. There are laws in place to prevent corruption, but enforcement in terms of laws regarding corruption is very weak. Low prosecution rates of corrupt officials is another contributing factor to the rampant corruption in Uzbekistan. It is not a criminal offense for a non-public official to influence the discretion of a public official. The judicial system faces severe functional deficits due to limited resources and corruption.
The Republic of Singapore is generally perceived as one of the least corrupt countries in the world. Cases are mostly handled by the Singapore Corrupt Practices Investigation Bureau (CPIB), a government agency in Singapore that investigates and prosecutes corruption in the public and private sectors. According to a Transparency International survey, an overwhelming majority of people in Singapore do not hear cases of corruption by public officials or institutions through media in their lifetime. In 2020, Singapore's public sector was ranked by Transparency International as the fourth least corrupt in the world and the most transparent in Asia.
Corruption in South Sudan is among the worst in the world. The nation's elites have developed a kleptocratic system that controls every part of the South Sudanese economy. This system has taken shape quickly in a relatively short period, South Sudan having won self-rule in 2005 while remaining part of Sudan, and having been accorded full sovereignty in 2011.
Corruption in Bolivia is a major problem that has been called an accepted part of life in the country. It can be found at all levels of Bolivian society. Citizens of the country perceive the judiciary, police and public administration generally as the country's most corrupt. Corruption is also widespread among officials who are supposed to control the illegal drug trade and among those working in and with extractive industries.
Corruption in Ecuador is a serious problem. In 2014, the U.S. Department of State cited Ecuador's corruption as a key human-rights problem. According to Freedom House, "Ecuador has long been racked by corruption", and the weak judicial oversight and investigative resources perpetuate a culture of impunity.
Anti-corruption comprises activities that oppose or inhibit corruption. Just as corruption takes many forms, anti-corruption efforts vary in scope and in strategy. A general distinction between preventive and reactive measures is sometimes drawn. In such framework, investigative authorities and their attempts to unveil corrupt practices would be considered reactive, while education on the negative impact of corruption, or firm-internal compliance programs are classified as the former.
The 2005 Japanese bridge scandal was centered around the use of bid-rigging between 47 colluding Japanese firms and Japan Highway Public Corporation (JH) in the granting of contracts to build steel bridges in violation of Japanese competition law. It was the biggest such scandal in the history of the nation up to that point, with an estimated 23.5 billion Japanese yen of unfair gains over fiscal years 2003 and 2004.