Unclear Usage of 12.2 Billion Won in Black Money... Allegations of Bribery Behind Tokyo Olympic Bid

[Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jaehee] Japan reportedly transferred more than 1.1 billion yen (approximately 12.2 billion KRW) overseas to secure the 2020 Tokyo Olympic and Paralympic Games, but the unclear usage of these funds has raised suspicions that they may have been used for illicit payments, Kyodo News reported on the 23rd.

According to the report on the 23rd, 200 million yen (approximately 2.2 billion KRW) of the money sent overseas was paid to Black Tidings (BT), a Singapore-based consulting firm commissioned by the Tokyo Olympic and Paralympic Bid Committee (Bid Committee). However, Kyodo News cited sources stating that the recipients and usage of the remaining funds are unclear.

The Olympic bid activity report published in April 2014 (covering September 2011 to September 2013) stated that overseas consulting expenses amounted to about 780 million yen (approximately 8.7 billion KRW). However, an external investigation team from the Japanese Olympic Committee (JOC) pointed out that at least 1.1 billion yen was spent on overseas consulting, indicating conflicting explanations regarding the expenditure.

The Bid Committee reportedly transferred about 900 million yen (approximately 10 billion KRW) in around ten installments to the company of Haruyuki Takahashi, a former executive director of the advertising firm Dentsu involved in the bid activities and a director of the Tokyo Olympic and Paralympic Organizing Committee. However, this was not recorded in the Bid Committee’s activity report.

The bid report stated that the total bid expenses amounted to about 8.9 billion yen, combining 5.4 billion yen raised by the Bid Committee through private donations and sponsorships and 3.5 billion yen provided by the Tokyo Metropolitan Government.

Additionally, the Bid Committee transferred $2.325 million (approximately 270 million KRW) to BT in July 2013, just before the host city decision, and again in October 2013, immediately after the decision. Kyodo reported that other overseas transfers were concentrated during periods of active international promotion.

Furthermore, sources said that aside from overseas transfers, there were other cash transactions involving unclear recipients amounting to hundreds of millions of yen (over approximately 1.1 billion KRW).

At the time, a Bid Committee official responded regarding overseas transfers, stating, "Due to confidentiality obligations, individual cases are not disclosed."

An expert on bidding-related matters commented, "While these are presumed to be for overseas consulting fees or hotel accommodations, it is necessary to clarify the actual situation and ensure transparency to boost the atmosphere for the Games scheduled for next summer."

According to data from the Financial Crimes Enforcement Network (FinCEN) under the U.S. Treasury Department and French authorities analyzed by the International Consortium of Investigative Journalists (ICIJ) and participating Japanese media, BT transferred $367,000 (approximately 425 million KRW) to Papa Massata Diack, son of then-IOC member Lamine Diack (87, Senegal), and companies related to Papa Massata around the time of the Tokyo Olympic decision.

This content was produced with the assistance of AI translation services.