US Navy contractor in Japan charged with wastewater fraud
NEW YORK -- On Aug. 30, 1945, the vice admiral in charge of Japan's Yokosuka Naval Base surrendered his command to the Allies, enabling the U.S. Navy and Marines to occupy berths and dry docks of the sprawling Imperial Navy shipyard.
Especially enticing for the Americans was Dry Dock 6, the
360-meter-plus behemoth where the Japanese wartime aircraft carrier Shinano was
constructed.
Since that August, the U.S. Navy has maintained a forward
presence in Yokosuka. The base is now home to the USS Blue Ridge, the command
ship of the 7th Fleet; the USS Ronald Reagan, the Navy's sole forward-deployed
aircraft carrier; and 10 large support vessels. Around 24,000 military and
civilian personnel live and work there.
The Reagan alone can hold up to 6,000 crew members at full
operational mode. Treating and disposing of the oily wastewater emitted from
the naval ships is no small task.
Now, bosses at a Japanese contractor have been indicted by a
federal grand jury for allegedly dumping contaminated water into the ocean
without adequate treatment, the U.S. Department of Justice said this week.
Yokohama-based Kanto Kosan received about $120 million in
U.S. Navy contracts from around 2007 to 2020, including "tens of
millions" to remove, treat and dispose of oily wastewater from ships and
submarines at three American bases at Yokosuka, Sasebo and Okinawa, according
to the Justice Department.
Oily wastewater includes fuel tank cleaning wastewater, bulk
fuel tank bottom wastewater, and wastewater contaminated with fuel system icing
inhibitor, according to the indictment.
Kanto Kosan President Sojiro Imahashi and two managers stand
accused of false claims, ocean dumping, and fraud against the U.S.
"The alleged conduct of the defendants in this case
posed a threat to the critical strategic alliance between the United States and
our valuable partner nation of Japan," said Stanley Newell, the special
agent in charge of the case at the Defense Criminal Investigative Service, in a
news release.
The contracts typically required Kanto Kosan to treat the
oily wastewater in accordance with Japanese environmental regulations before
discharging it into the ocean, the Justice Department said.
But the company would "minimally treat" it to
remove visible contaminants and then discharge the "improperly treated or
untreated" wastewater into the ocean "despite lacking any
authorization or permit to do so," the indictment alleges.
Under the contracts, Kanto Kosan was typically supposed to
semiannually sample and test effluent at a Japanese-certified laboratory and
provide copies of the test results to the U.S. Navy, the Justice Department
said.
A storage tank on each treatment barge was filled with tap
water for U.S. Navy or independent testers to unknowingly take samples from,
the indictment explains.
The charges come as Washington and Tokyo negotiate a
long-term arrangement of the sharing the financial burden of hosting American
troops in Japan. Previous U.S. President Donald Trump reportedly demanded a
significant increase from the roughly $1.9 billion a year in support that Japan
pays.
This week, the two sides agreed to maintain the current
scale of host-nation support for one more year. Host-nation support pays mainly
for the costs of local staffers and utilities. Treatment of wastewater from the
ships is paid for by the American side.
Japanese lawmakers point to the strategic importance of
American bases in Japan for the overall Indo-Pacific strategy of U.S. forces.
Having a base at Yokosuka makes it possible to reach Asian
locations 17 days faster than by operating out of the continental U.S.
"It would take several times the number of rotationally
based ships in the United States to equal the same presence and crisis-response
capability as the forward-deployed ships in Japan," the U.S. Navy's own
website says. "Yokosuka's reputation for exceptional service to the fleet
is absolutely vital to mission accomplishment for naval units from Hawaii to
the Persian Gulf."
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