TOKYO -- A third or about 11.5 billion yen ($101 million) worth of cloth masks the Japanese government planned to distribute to the public remained in storage as of March, Nikkei learned Tuesday, raising questions over the effectiveness of Tokyo's initial response to the coronavirus pandemic.
Since March 2020, the Japanese government has procured a total of 260 million washable cloth masks -- 120 million to be distributed to households under a scheme nicknamed "Abenomask," after then-Prime Minister Shinzo Abe, and another 140 million to nursing care and child care facilities.
The plan was designed to ease a shortage of medical masks in Japan during the initial months of the coronavirus pandemic. But the Abenomasks in particular were deeply unpopular, with critics questioning whether the government's time and resources could be better spent elsewhere amid a rapid climb in cases.
Japan's Board of Audit recently investigated the fate of the masks procured by the government by last summer. It found that about 82 million designated for care facilities had not made it to their intended recipients as of end of March, multiple sources told Nikkei.
At about 140 yen each, these masks are estimated to have cost the government about 11.5 billion yen. Storing them between August 2020 and March of this year had cost another 600 million yen.
The issue largely stems from the government's inability to respond on the fly to shifting case numbers and demand. Tokyo has been distributing the masks to care facilities in batches since spring 2020. But the mask shortage was largely resolved by July 2020, when it announced its third round of handouts of 80 million masks, ultimately leading to excess supplies.
The Board of Audit also reviewed eight state coronavirus-related programs. Relevant agencies had identified 2 billion yen in improper payments between the government's employment subsidy for companies that maintained payroll during the pandemic, and cash grants of up to 2 million yen to small and midsize businesses.
The board has concluded that the employment subsidy in particular requires better screening procedures. The government currently focuses primarily on the application documents submitted by the companies.
The findings will be incorporated into the board's annual report for fiscal 2020 due out next month. The board will not state a formal opinion on financial management regarding the matter. But it will issue a warning to the Health Ministry to execute its budget more effectively, especially with the government expected to continue allocating much of its resources to the coronavirus response.