Governor Saito defends against misplaced accusations following audit

The origin of these accusations stems from a comprehensive external audit released in March 2023, which highlighted deficiencies in port operations managed by Hyogo Port. Critics allege that Saito’s efforts to address these issues led to his current predicament. Yet, Kiyohiro Takahashi, a certified public accountant and external auditor, firmly denies any involvement from the governor in the audit process. “We do not accept suggestions from the governor in an audit, and it is impossible for us to follow the governor’s wishes,” he stated.

Hyogo Prefectural Governor Motohiko Saito is facing backlash after the prefectural assembly unanimously passed a motion of no confidence against him. Amidst the controversy, a narrative has emerged online suggesting that Saito was “crushed” by powerful port interests and media pressure. However, this claim is being challenged by key figures involved in the situation.

The origin of these accusations stems from a comprehensive external audit released in March 2023, which highlighted deficiencies in port operations managed by Hyogo Port. Critics allege that Saito’s efforts to address these issues led to his current predicament. Yet, Kiyohiro Takahashi, a certified public accountant and external auditor, firmly denies any involvement from the governor in the audit process. “We do not accept suggestions from the governor in an audit, and it is impossible for us to follow the governor’s wishes,” he stated.

The audit revealed that Hyogo Port, which has exclusive rights to operate the prefecture’s port facilities, was receiving fee reductions or exemptions from the prefecture while charging private companies the full rates. As of the end of fiscal 2021, Hyogo Pier held approximately 1.376 billion yen in cash deposits, raising concerns about financial transparency. The audit committee urged the prefecture to reassess these practices, suggesting that the audit could inadvertently serve as a “second source of revenue” for the government.

Each year, the prefecture conducts an external audit with themes decided by independent experts. The focus for fiscal 2022 was on port operations, a sector that has historically been under scrutinized due to its substantial budget. Takahashi noted that the decision to audit port operations was made independently of the governor’s input.

Despite the lack of evidence supporting the narrative that Saito’s actions targeted port interests, social media discourse has gained traction, with posts suggesting he is under attack for attempting to disrupt these interests. The hashtag “#GoGovernorSaito” briefly trended online, fueled by misconceptions surrounding the audit.

A representative from the Hyogo Prefectural Government’s Finance Division emphasized that audit topics are chosen by external auditors, leaving no room for the governor’s influence. This clarification underscores the necessity for accurate public discourse as the governor navigates a challenging political landscape amid ongoing scrutiny.