Expo construction costs breach case, home renovation costs claimed under the name of "Oyayo Ring"?

In the case of the former general construction manager of Takenaka Corporation who was arrested by the Osaka Prefectural Police on suspicion of breach of trust over construction costs for the Osaka/Kansai Expo, interviews with people involved revealed that the contractor who renovated the former director's home was instructed to claim payment under the name of ``Oyoe Ring.''

The construction company reportedly received instructions from a civil engineering and construction company in Nara Prefecture that was subcontracted to Takenaka Corporation for construction work for the Expo. Officials of this company are suspected of colluding with the former director.

The suspect arrested was Tatsumi Kawai (61), a resident of Kitaichi-cho, Nara City, who was an employee of Takenaka Corporation and the general manager of the construction site for the Expo venue.

The suspect was arrested on charges that between February and June 2025, he colluded with officials from a subcontracting company to inflate Takenaka Corporation's bill for interior construction costs for a temporary office at the Expo venue, causing Takenaka Corporation approximately 13.69 million yen in damages.

On the 20th, prefectural police referred the suspect to the prosecutor's office.

According to prefectural police, the inflated amount was used to partially pay for renovation work at his home, an apartment he owns, and a restaurant run by a relative. The total cost of the series of renovations was over 60 million yen.

According to investigators, it is possible that Kawai and his subcontractor staff repeatedly inflated Expo construction costs and covered most of the costs.

The exterior walls are made of Yoshino cypress, ``at least tens of millions of yen''

According to a person with knowledge of the construction process, Kawai's home was renovated between July and December 2025.

It was a major renovation that involved returning the two-story house to its skeleton, replacing the exterior walls with Yoshino cypress wood, and replacing the interior and plumbing.

``I think it cost at least tens of millions of yen,'' said a source.

Renovations were mainly carried out by contractors commissioned by subcontractors.

When the contractor tried to claim payment for the renovations, he was told by a subcontractor that the work should not be done on Kawai's home, but instead on the large roof ring and office renovations at the Expo venue.

Based on this invoice, prefectural police believe that the subcontractor, after consulting with Kawai, added the cost of the renovation work as ``large roof ring-related work'' and billed Takenaka Construction.

This contractor had never done any construction work inside the Expo venue.

"I think (the contractor) thought the change in the name of the work was a tax measure," said a person involved.

Prefectural police are also voluntarily questioning personnel at subcontracting companies.