Japan likely to revise proposed budget due to wage-data errors

Labor ministry officials have admitted issuing monthly wage data without meeting sampling standards for years. (AFP)
Updated 11 January 2019

Japan likely to revise proposed budget due to wage-data errors

  • The data error has caused the ministry to underestimate payments made under Japan’s employment insurance program
  • Labor ministry officials admitted issuing monthly wage data without meeting sampling standards for years

TOKYO: Japan’s government is likely to revise its budget draft for the next fiscal year to pay for a shortfall of employment insurance benefits caused by errors in the country’s wage data, Finance Minister Taro Aso said on Friday.
The likely budget revision — a rare move — would follow the revelation that the labor ministry miscalculated workers’ average wages for years.
The data error has caused the ministry to underestimate payments made under Japan’s employment insurance program, which includes unemployment benefits, and another insurance covering compensation for workplace accidents.
Labor ministry officials admitted on Wednesday that they have issued monthly wage data without meeting sampling standards for years, hurting the credibility of a key gauge of the success of Prime Minister Shinzo Abe’s economic policies.
“Economic indicators provide the basis for decision on fiscal and economic policies and they must always be accurate,” Aso told reporters after a cabinet meeting. “It’s very regrettable that the wages data will be recompiled.”
Aso said the wage data flaw has caused the labor ministry to underestimate benefits for employment insurance and workpeople’s accident insurance. As a result, it needs to pay for additional benefits to make up for past shortfalls by adding necessary funds to the budget for the fiscal year to begin April 1.
“It’s highly likely that the budget draft will be revised,” Aso said, adding that the amount of extra spending has not been fixed yet.
In compiling the monthly data, which covers some 33,000 firms with five or more full-time employees, the labor ministry is supposed to collect samples from all the companies that employ 500 or more workers.
But it turned out that the data sampling failed to cover two-thirds of some 1,400 businesses in Tokyo for an unspecified period of time, ministry officials said. Domestic media reported the sampling error extends back for 15 years.
Chief Cabinet Secretary Yoshihide Suga said on Friday the government would examine all economic indicators.
The budget draft was compiled in December and was due to be sent to the parliament later this month for approval before April 1.
Abe’s cabinet last month approved a record ¥101.5 trillion ($937.12 billion) annual budget draft, featuring spending to offset the pain of a planned sales tax hike scheduled for October.


Arab News recording exposes Nissan lawyer’s lie on IMF bailout for Lebanon

Updated 01 June 2020

Arab News recording exposes Nissan lawyer’s lie on IMF bailout for Lebanon

LONDON: Arab News has published the recording of an interview with a Nissan lawyer after he denied saying that a bailout of Lebanon by the International Monetary Fund (IMF) was linked to the extradition of fugitive tycoon Carlos Ghosn.

The former Nissan chairman fled to Beirut in December from Japan, where he faced charges of financial wrongdoing.

In a story published in Arab News Japan on Saturday, Sakher El Hachem, Nissan’s legal representative in Lebanon, said the multibillion-dollar IMF bailout was contingent on Ghosn being handed back to Japan. 

The lawyer said IMF support for Lebanon required Japan’s agreement. Lebanese officials had told him: “Japan will assist Lebanon if Ghosn gets extradited,” the lawyer said

“For Japan to agree on that they want the Lebanese authorities to extradite Ghosn, otherwise they won’t provide Lebanon with financial assistance. Japan is one of the IMF’s major contributors … if Japan vetoes Lebanon then the IMF won’t give Lebanon money, except after deporting Ghosn.”

On Sunday, El Hachem denied making the comments. “The only thing I told the newspaper was that there should have been a court hearing on April 30 in Lebanon, but it was postponed because of the pandemic,” he said. In response, Arab News published the recording of the interview, in which he can be clearly heard making the statements attributed to him. 

Japan issued an arrest warrant after Ghosn, 66, escaped house arrest and fled the country.