Audit report finds Japan ‘misspent’ tsunami rebuilding money

Funds earmarked for tsunami reconstruction work was diverted to unrelated projects, a Japanese government audit shows, as residents of the devastated northeast vent frustration over the slow pace of rebuilding.

According to the report, parts of the $187 billion were used to fund an array of unconnected works, including road-building on the southern island of Okinawa and boosting security for Japan's controversial whale hunt.

Billions were used to buy rare earths, key components for high-tech products such as electric cars and smartphones, and other money was used to send disaster-prevention equipment to Southeast Asian countries.

The March 2011 earthquake-triggered tsunami killed nearly 19,000 people in one of Japan's worst peace-time disasters, which also left it grappling with a nuclear emergency at Fukushima.

Nearly 20 months on, more than 300,000 people are still living in temporary homes, either because they have been unable to rebuild after the tsunami or because radiation levels around the nuclear plant mean it is unsafe to return.

Politicians from the devastated northeast repeatedly express exasperation at the slow pace of reconstruction and a lack of leadership from Tokyo.

An official from Fukushima prefecture said needs in the area around the crippled nuclear plant were not being met.

The report shows the foreign ministry spent 4.2 billion yen in providing disaster-prevention equipment to Southeast Asian countries in the year to March.

It also spent 164 million yen strengthening visa-screening processes for foreigners visiting Japan.

The industry ministry was awarded 201 million yen for an exhibition on "advanced forms of agriculture, forestries and fishery in Tokyo and other places".

The audit report said only half of the money set aside for reconstruction had actually been spent, blaming a shortage of staff in local municipalities.