The criminal complaint filed in January by the Foreign Ministry against the former official in charge of logistics for VIP trips overseas has led to his arrest on a charge of fraud. An internal investigation has revealed that Mr. Katsutoshi Matsuo, who was fired in January for embezzlement, had swindled the government out of some 500 million yen since 1993 and that some of the money had been used to buy racehorses, golf-club memberships and other expensive items.
The Foreign Ministry has a confidential fund to cover travel and other ad hoc expenses. However, instead of using that reserve, Mr. Matsuo tapped into a similar fund in the Cabinet Secretariat. The reason is that a large proportion of the ministry fund is routinely transferred to the secretariat fund. A full investigation must be made into the entire money flow and the relationship between the two funds.
The Tokyo Metropolitan Police Department arrested Mr. Matsuo on Saturday on a charge of defrauding the government of 42 million yen in connection with official visits prime ministers made to Saudi Arabia, Vietnam and Jordan between 1997 and 1999. The MPD says he padded hotel bills and other expenses for Foreign Ministry and other government delegates. From 1993 to 1999, when he headed the Overseas Visit Support Division, Mr. Matsuo handled as many as 46 prime-ministerial trips abroad, effectively serving as treasurer for each journey.