Scandal-hit welfare group to fold

A social welfare organization accused of illegally receiving government subsidies plans to disband after selling a hotel saddled with at least 100 million yen in debt, sources said.

Zenkoku Seishin-Shogaisha Shakai-Fukki Shisetsu Kyokai, a group of facilities for rehabilitating people with mental disorders, is expected to sell Heartpia Kitsuregawa to a medical organization in Chiba Prefecture.

The hotel, which was built in 1996 in Sakura, Tochigi Prefecture, to give vocational training to people with mental disorders, has incurred chronic losses.

Shuji Takano, chairman of the association, and Ichiro Ueno, a former vice chairman, were indicted last Tuesday for illegally receiving 51.1 million yen in subsidies in fiscal 2007 and 2008.

The two admitted that the association diverted subsidies to personnel and other expenses at Heartpia Kitsuregawa.(IHT/Asahi: November 16,2009)