Here’s a story that is a perfect example of how wastage of financial aid can occur if the rules and regulations set are too loose.

The Japanese government had recently distributed 4.5 trillion yen (RM170 billion) to local governments affected by the COVID-19 pandemic.

According to a report by Mothership, Singapore, quoting Yahoo News Japan, there are no set rules on how the money should be spent, which means the local governments can choose how to use the funds provided.

One very "smart" local government in the town of Noto in the Ishikawa prefacture decided to use the millions of yen received to build a giant statue of a squid.

*cue eye roll*

A tourist attraction

The statue (which we have to say, looks extremely cheap and ugly) cost an alleged 27 million yen (RM1,024,554) and was built as a tourist attraction.

The spokesperson of the project was quoted in the report as saying that the funds provided did not need to be used for purposes directly related to COVID-19.

The spokesperson added that the town made the decision taking into account "long-term" effects.