Economy, Trade and Industry Minister Hiroshi Kajiyama. (Mainichi)

       TOKYO (Kyodo) -- Japan's industry ministry said Monday it will launch a probe into two of its officials who were arrested last week for allegedly swindling the ministry of some 5.49 million yen ($49,000) in office rental subsidies to help coronavirus pandemic-hit businesses.

       Economy, Trade and Industry Minister Hiroshi Kajiyama said at a press conference that his ministry will look into why it failed to detect them trying to commit the alleged fraud and will take measures to prevent similar cases.

       "It is extremely regrettable and I apologize to everyone," Kajiyama said.

       The Tokyo Metropolitan Police Department arrested Makoto Sakurai and Yutaro Arai on Friday on suspicion of obtaining the money by using false application documents between late December last year and early January, police said.

       The Small and Medium Enterprise Agency of the ministry was in charge of the subsidy program to help struggling sole proprietors and small businesses, who saw sales drop due to the coronavirus pandemic.

       Sakurai was working at the ministry's Industrial Finance Division and Arai at its Corporate System Division. They had never worked for the agency.

       The police suspect that Sakurai used most of the swindled cash to purchase luxury brand goods, they said. The two have basically admitted to the allegations, according to an investigative source.

       Font Size S M L Print Timeline 0