TOKYO (Kyodo) -- Defense contractor Kawasaki Heavy Industries generated about 1.7 billion yen ($11 million) in slush funds over six years through bogus transactions with subcontractors, using part of the money to buy goods or meals for members of Japan's Maritime Self-Defense Force, sources close to the matter said Wednesday in disclosing the figure.
The Defense Ministry will demand that Kawasaki Heavy, which handles maintenance and repairs of MSDF submarines, repay the amount overcharged since fiscal 2018, according to the sources.
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