A Tokyo-based maker of precision machinery overcharged the Air Self-Defense Force by at least ¥9 million over a three-year period to fiscal 2015, the Acquisition, Technology & Logistics Agency said Friday.
The agency, an affiliate of the Defense Ministry, suspects Tokyo Aircraft Instrument Co. began overcharging the ministry in the 1980s, when it was the Defense Agency. The total amount of expenses padded could reach several hundred million yen, an official of the acquisition agency said.
The company admitted to the fraudulent billing and said it did so to avoiding falling into the red. The agency will investigate to tally the false claims and seek repayment.
Tokyo Aircraft Instrument overstated the time required to produce such defense equipment as direction finders for fighter planes and oxygen supply checking equipment so it could charge extra, according to a sample investigation the agency conducted into its procurements from Tokyo Aircraft from fiscal 2013 to 2015.
The agency opened the investigation after the company reported finding erroneous factory data when it upgraded its accounting system. The agency also conducted an on-site inspection of the firm, based in Machida, on Jan. 24.