Japan police arrest major construction firm manager for allegedly inflating Expo ring cost

Osaka police arrested a former manager of construction giant Takenaka Corp. on August 19, 2024, in connection with alleged financial wrongdoing related to the 2025 World Expo. Tatsumi Kawai, 61, is accused of causing the company to lose approximately 13.7 million yen (about $86,000) by instructing subcontractors to inflate project costs for the Grand Ring, the Expo's signature structure.

Kawai, who served as the overall site manager at Takenaka Corp.'s Osaka headquarters, was responsible for overseeing construction of the Grand Ring, a massive wooden structure spanning about 2 kilometers. According to police, Kawai allegedly ordered a subcontractor to overbill the company for construction costs. The police are investigating to determine the full extent of Kawai's alleged actions and the source of the funds he allegedly used.

The Grand Ring was one of three bidding sections of the Expo, with Takenaka Corp.'s joint venture winning the contract for the western section, covering roughly 700 meters. The consortium's contracts for the project were valued at approximately 35 billion yen (about $219.5 million) in total. Kawai appeared in Expo-related television coverage as the person in charge of the joint venture.

Following the Expo's conclusion, work has been ongoing to dismantle the Grand Ring and Expo pavilions. A Takenaka Corp. representative expressed regret over the arrest, apologizing for the concern and inconvenience caused to all involved. The company stated they would fully cooperate with the police investigation and handle the matter strictly once the facts are confirmed.