Awa City Mayor and Two Others Arrested Over Suspected Construction Cost Fraud

Authorities have arrested the Mayor of Awa City in Tokushima Prefecture and two other individuals on suspicion of fraud involving the inflation of construction costs. The arrests, which took place on November 10, 2026, involve allegations that costs were artificially increased for a cable network project commissioned by the city. The suspects are accused of manipulating project expenses to cover personal liabilities.

Details of the Alleged Fraud

The investigation centers on a cable network project ordered by Awa City. According to police, the suspected fraudulent activity occurred in May 2024. The scheme allegedly involved adding 3.5 million yen to the construction bill for the network project. Japanese media reported that this specific amount was intended to cover repair costs related to a traffic accident caused by the Mayor.

The accident in question reportedly occurred in 2023, when the Mayor was involved in a single-vehicle accident. Japanese media reported that the incident resulted in damage to a residential block wall. It appears the funds intended for the city's infrastructure project were instead diverted to address the damages from this personal accident.

The Suspects Involved

A total of three people have been taken into custody in connection with this case. In addition to the Mayor, Hisato Machida, who is 69 years old according to Japanese media, two other individuals were arrested. One of the suspects is a male city official who served as a section chief in the Municipal Information Division.

The investigation suggests that the city official played a direct role in the mechanics of the fraud. Japanese media reported that the official allegedly instructed a successor to process the fraudulent payments to ensure the inflated costs were handled within the city's administrative system. The third person arrested in the case is an employee of a system company, which was involved in the project where the costs were allegedly manipulated.

Legal Proceedings

The arrests mark a significant development in the investigation into how public funds were managed within the Awa City administration. While the specific charges have been detailed by officials, the legal process will determine the full extent of the involvement of the municipal staff and the private company employee. The case highlights how personal accidents and administrative roles can intersect in cases of suspected financial misconduct involving public works projects.