Suspicions regarding introduction of immigration system: Government orders contrary to bidding policy?

Original publication date: May 12, 2006

Currently in the national diet, discussions are taking place on an "amendment" to the Immigrant Control and Refugee Recognition Law legislating collection of fingerprints from foreigners visiting Japan. From deliberations regarding the selection of contractors for the new immigration control system, it has become clear that the Justice Ministry, contrary to government guidelines regulating a separation between "support" contractor and "implementation" contractor for system development, is essentially promoting the commission of the same foreign company for both jobs.

The Justice Ministry is currently, with the revision to the [immigration] law, attempting to shift the whole immigration control system to a new system incorporating biometric information. On April 21, in the Lower House Committee on Judicial Affairs, House Member Hosaka Nobuto (Social Democratic Party) pursued questions regarding whether the ministry has selected Accenture Ltd. (headquartered in Bermuda), a start-up venture that delivered a similar system to the American government, for the contract.

The Justice Ministry awarded a negotiated contract of roughly 60 million yen to Accenture Ltd. in 2004 to investigate possibilities for system reform, and then again, in 2005, awarded a contract of roughly 100 million yen to the same company for an "Optimization Plan" [Saitekika keikaku/最適化計画] re-examining the whole system. Meanwhile, the same company was last year awarded a contract, at only 100,000 yen, for business operations including demonstration experiments regarding a next-generation immigration screening system using biometrics such as IC passports. In other words, Accenture has been steadily winning "support" contracts for development of the new system.

Concerning the order for system and services, to avoid collusive trading partnerships, government policy demands a separation between the "support" contractor and the "implementation" contractor for the new system. In fact, in discussions at the Justice Ministry, Immigration Bureau Chief Miura Masaharu, in a reply to questions from House member Hosaka Nobuto, stated that the "implementation" would be carried out by a separate company.

However, responding to questions put to them by this magazine, Accenture's public relations department replied: "We are currently aiming our efforts at becoming not only the supporter, but also the 'implementation' contractor, for development of the new system."

Accenture was last year awarded a contract valued at up to 10 billion dollars (1.1 trillion yen) for America's Immigration Bureau system, and has consistently been awarded contracts for design, development and project administration of systems using biometric certification technology. It is also connected with Fujitsu Limited, a company that deals with biometric certification technology. Compared to the scale of "implementation" operations for Japan's new immigration control system, Accenture's "support" contract is nothing, this at least is certain. The Justice Ministry is saying that: "We cannot answer questions about future bidding for implementation contracts."

(Writer: 岡崎智)