The government will launch a probe this month into whether outsourced administrative work related to its coronavirus relief package, which was subcontracted to Japan's largest ad agency, was handled appropriately, industry minister Hiroshi Kajiyama said Monday.

The move comes amid questions over a program to provide cash benefits of up to 2 million yen ($18,000) each to small and medium-sized businesses that have been hit hard by the pandemic.

The Ministry of Economy, Trade and Industry contracted a group called the Service Design Engineering Council to implement the program for 76.9 billion yen, only for the group to subcontract the task to advertising agency Dentsu Inc. for 74.9 billion yen.

Opposition lawmakers and other critics say the 2 billion yen kept by the group was a waste of taxpayers' money.

The ministry will enlist independent experts such as auditors to conduct the probe in order to verify the validity of the contract, and a separate panel will be set up to improve the transparency of future contracts, Kajiyama told a press conference.

"Some have voiced skepticism about the program, so we decided to hear from some people from the outside. If anything needs to be fixed or goes against common sense, we have to work to remedy that."

Dentsu was tasked with processing applications for the cash benefits including screening for invalid or fraudulent claims, a massive undertaking that it further subcontracted to temporary staffing service Pasona Group Inc. and Transcosmos Inc., which provides integrated marketing, outsourcing and call center services.

All three companies are believed to have been involved in the establishment of the Service Design Engineering Council, which is staffed by only 21 people.

==Kyodo

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