The Osaka Prefectural Police have executed a search warrant on the construction company 'DIO' based in Takasaki, Gunma Prefecture, over allegations of carrying out unauthorized work for the Thailand Pavilion at the Osaka-Kansai Expo. The police conducted the searches at eight locations connected to the company, suspecting that they undertook electrical work for the pavilion without the necessary business permits from the national government and Osaka Prefecture, amounting to approximately 44 million yen. The search took place on the 12th, resulting in the seizure of around 110 items, including construction-related documents and computers from the company’s associates' homes and offices.

The investigation was triggered by a complaint received in June of the previous year from another construction company involved in the Thailand Pavilion project, which pointed out an outstanding payment issue regarding the construction costs. As the investigation progressed, the suspicions regarding DIO's unauthorized contracting practices were unveiled, leading to the company's suspension of operations for 30 days back in September. This incident raises serious concerns about regulatory compliance and the integrity of construction practices tied to international events like the Expo.

The issues surrounding construction permits are not isolated, as another local construction company was also penalized last September for acquiring work on the Angola Pavilion without the appropriate approvals, resulting in a fine. Such incidents point to a potential pattern of contractors bypassing legal regulations which could jeopardize the successful execution of international showcases, which are critical for promoting Japan's global standing and economy during major events.