Tokyo has taken significant action against Kawasaki Heavy Industries, a prominent local shipbuilder, by barring the company from participating in government contracts. This suspension arises from findings that the company has engaged in the long-term falsification of fuel efficiency data for submarine engines supplied to the Japan Maritime Self-Defense Force (JMSDF).
The ban is set to remain in effect until March 2026, coming on the heels of Kawasaki Heavy’s revelation that it manipulated inspection data for a total of 66 submarine engines delivered between 1988 and 2021. This misconduct has raised concerns within Japan’s Ministry of Defense, which acknowledged that while the issues did not compromise submarine safety or operational performance, they nonetheless represent a severe violation of contracting standards.
In a statement, Kawasaki Heavy Industries emphasized its commitment to addressing the misconduct, assuring stakeholders of its dedication to implementing measures that will prevent such violations in the future.
The situation has been further complicated by additional disciplinary measures against 11 personnel within the JMSDF who are linked to another scandal involving inappropriate gifts from Kawasaki Heavy. Reportedly, these gifts included game consoles, golf bags, and watches, purchased with “slush funds” generated from fictitious transactions tied to submarine repair contracts. The total value of these gifts is estimated at approximately 1.16 million yen (around $7,432).
As part of the repercussions, three sailors who oversaw ship repair and supply contracts have received suspensions, while eight current or former submariners have experienced reductions in pay.
Kawasaki Heavy Industries stands as a major manufacturer of submarine engines for the JMSDF and is among Japan’s largest defense contractors. Currently, the Japanese military operates 25 vessels from Kawasaki across various submarine classes, including the advanced Taigei-class attack submarines, further underscoring the importance of integrity and compliance within the defense sector.
