Osaka Steps Up Drive to Rid Expo, IR of Organized Crime
Osaka, Aug. 27 (Jiji Press)--The Osaka prefectural government's revised ordinance to eliminate organized crime groups came into force on July 1, enabling immediate penalties against such groups and businesses, including construction companies, if payoffs are confirmed to have taken place.
The ordinance aims to sever financial ties between organized crime groups and the construction industry, particularly as large-scale construction work is underway in preparation for the opening of the 2025 World Exposition in the capital city of Osaka next April and an integrated resort, including a casino, also in the city expected around autumn 2030.
"We will ensure that no funds flow to organized crime groups during the Expo," a senior official from the prefectural police department said.
Under the revised ordinance, construction companies with sales offices in six cities within the prefecture--Osaka, Sakai, Kishiwada, Hirakata, Kadoma and Higashiosaka--designated as specially strengthened areas, are classified as "regulated construction companies."
The ordinance includes a provision for direct punishment that permits immediate arrests without the need for prior procedures, such as guidance or recommendations from the prefectural public safety commission, when illicit payments are made to organized crime groups. The provision allows law enforcement to take swift action against construction companies found to have ties with these groups.
The statutory penalty is imprisonment for up to one year or a fine not exceeding 500,000 yen. In addition, the ordinance has a leniency clause, enabling the commutation or waiver of punishment for contractors who voluntarily confess wrongdoing.
"It is rare to see a local ordinance that specifically targets the construction industry," an investigative source said. "Elsewhere, a similar ordinance by the Fukuoka prefectural government applies to all businesses."
Atsushi Wada, a lawyer with the Kyoto Bar Association who is familiar with measures against organized crime groups, noted that the construction industry is likely targeted as a funding source for these groups due to the large sums involved in construction projects and the complex structure of order placements.
"With layers of companies involved, including contractors, subcontractors and even sub-subcontractors, there's a need for behind-the-scenes coordination among them and strategies to manage neighborhood relations (for construction projects). This complex business structure is vulnerable to intervention by organized crime groups, leading to the flow of funds to these groups," he said.
Large-scale development projects such as the Expo and integrated resorts can be particularly attractive targets for organized crime groups. Wada commended the revised ordinance. "It's very significant that Osaka Prefecture is stepping up efforts to eliminate organized crime groups from the construction industry. Other prefectures are expected to closely monitor the impact of Osaka's revised ordinance," he said.
Under the revised ordinance, the sex industry, street solicitation and scouting are also classified as specially designated business operators, making them subject to the same direct punishment rules applicable to regulated construction companies.
To ensure that the revised ordinance is widely recognized, the prefectural police department has launched an intensive public relations campaign aimed at educating the public and raising awareness.
On July 1, officers from the prefectural police department's fourth investigation section, which is responsible for tackling organized crime, along with those from the Minami police station, patrolled restaurants and other businesses in the Minami downtown area in the city of Osaka, distributing leaflets that informed operators about the new penalties.
"We hope you will take the opportunity of the revised ordinance's enforcement to intensify your efforts further to eliminate organized crime groups and ultimately weaken and destroy them," Takashi Atsuta, chief of the Minami police station, said as he instructed investigators.
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