Tokyo has barred local shipbuilder Kawasaki Heavy Industries from bidding on government contracts after confirming decades-long falsification of fuel efficiency data for submarine engines used by the Japan Maritime Self-Defense Force (JMSDF).
The suspension, in effect through March 2026, follows Kawasaki Heavy’s disclosure that it manipulated inspection data for 66 submarine engines supplied between 1988 and 2021, according to local media.
Japan’s Ministry of Defense said the misconduct did not affect submarine safety or operational performance but constituted a serious breach of contracting standards.
“The Company takes this misconduct very seriously and offers an assurance to all stakeholders that it will continue to take clear and resolute compliance measures to ensure such misconduct is prevented in the future,” Kawasaki said.
Illicit Funds
The decision comes alongside disciplinary action against 11 JMSDF personnel implicated in a separate incident involving improper gifts from the contractor.
The defense agency said the items, including game consoles, golf bags, and watches, were purchased using “slush funds generated through fictitious transactions” tied to submarine repair contracts, The Mainichi Shimbun reported.
Three sailors who supervised ship repair and supply contracts received suspensions, while eight current or former submariners were given pay cuts.
The ministry said the total value of the items amounts to approximately 1.16 million yen ($7,432).
Kawasaki Heavy Industries is a major supplier of submarine engines to the JMSDF and one of Japan’s largest defense contractors.
The East Asian nation currently operates 25 Kawasaki vessels across various submarine series, including the next-generation Taigei-class attack submarines.
