At least 19 subcontractors say they are unpaid for Expo pavilion construction
The subcontractors claim the companies that commissioned the work failed to meet the deadline to pay them.
NHK found the subcontractors engaged in constructing pavilions for seven countries -- the United States, Angola, Serbia, China, Germany, Malta, and Romania.
In some cases, first-tier subcontractors claimed the primary contractors did not pay them. In other cases, the first-tier subcontractors were also unable to pay their second-tier subcontractors, causing a "chain of non-payment."
The alleged non-payments range from about 1 million yen to 120 million yen, or about 6,800 dollars to 820,000 dollars, per firm. Some subcontractors said that caused severe problems for their management.
Subcontractors say prime contractors cited alleged "breach of contract" and "client dissatisfaction" as reasons for non-payment. The subcontractors also say they were repeatedly told that officials in charge were not in Japan.
Multiple companies that commissioned the work told NHK that the allegations are false and there are no outstanding payments.
The expo's association, the central government and the Osaka prefectural government are considering launching an investigation into the situation and how to respond.
Kusunoki Shigeki, a professor at the University of Tsukuba, said construction works may have been carried out without finalizing contract details amid tight time constraints, due to the effects of rising labor costs.
He also said that when the client or prime contractor was an overseas company, gaps in understanding contracts may have occurred, as well as communication difficulties, which could have led to problems.
One hundred and fifty-eight countries and regions are taking part in the ongoing expo in western Japan.
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