Opposition slam Dentsu's 'opaque' US$700 mil windfall from Japan govt

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The advertising giant has been awarded a contract to service virus-hit firms. FMTNews DentsuGroupInc Japan

TOKYO: Japanese advertising giant Dentsu Group Inc has received almost US$700 million via a government contract to provide back-office services for a scheme to help virus-hit firms, under a framework opposition lawmakers called “opaque”.

Opposition politicians have questioned whether the contract with Service Design Engineering Council – and its arrangement with Dentsu and its multitude of subcontractors – is a waste of taxpayers’ money and could slow the process of channelling funds to eligible recipients. Scrutiny of the use of private companies to run the relief scheme comes as Prime Minister Shinzo Abe’s support rate has slid, partly due to his handling of the pandemic which critics have called clumsy.

Like the SMEs targeted by the relief fund, Dentsu has also been impacted by the lockdown measures. Particularly painful for the firm was the virus-induced delay in the Tokyo 2020 Olympics, in which it has a central part.

 

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