JA Wakayama said on Thursday that a female employee handling public money at a counter in Kinokawa City Hall had embezzled about ¥1.09 million. The cooperative said the money covered city taxes and nursing-care insurance premiums that residents had paid in cash.
The employee was dispatched to the cooperative by a staffing agency and worked the counter from September 11, 2025, to October 28 this year, according to JA Wakayama. The counter is at city hall because the cooperative is the city's designated financial institution — the bank appointed to collect and hold municipal funds.
The city contacted the cooperative in late October after noticing that some residents remained listed as unpaid even though they had been handed receipts. JA Wakayama investigated and the employee admitted taking the money.
Its inquiries found she had taken payments from 23 people across 38 transactions. The cooperative said it will pay the unpaid amounts at its own expense. It has consulted police and set up a telephone line for affected residents on 0736-77-7803, run by its Kinomoto regional headquarters finance and mutual aid department.