Bid rigging scandal

19 March 2008

Takeo Obayashi, chairman and CEO of Japan's fourth largest general contractor Obayashi, has resigned, following the company's alleged involvement in a series of bid-rigging scandals. Company president Norio Wakimura and executive vice president Yoshishia Obayashi also resigned.

However, the three men will still work for the company. Takeo Obayashi will become be a board director, while the other two will be retained as nonexecutive advisors. Toru Shiraishi, a senior manager, will take over as chairman and CEO.

The management changes follow a series of arrests of company cials on charges of bid rigging. In April adviser Shigeo Morii was arrested over the contract, which an Obayashi-Asabuma joint venture won, to build a municipal incinerator in Hirakata, Osaka Prefecture in November 2005.

Following his arrest public official Toyosaburo Hatsuda, Obayashi advisor and Masaaki Yamamoto and a police inspector were arrested for suspected involvement in the scam. Mr Hatsuda is alleged to have received JPY 30 million (US$ 245000) for ensuring the joint venture won the contract. Hirakata mayor Hiroshi Nakatsuka is also being investigated.

A further Obayashi adviser is currently in court facing allegations of bid-rigging on the contract to extend Line 6 of Nagoya subway.

Latest News
Jacobs to establish contracts framework for multi-billion-dollar Canadian transportation programme
Consultant Jacobs has won the strategic advisory and commercial management services contract (SACMS) with Metrolinx’s Capital Projects Group
Hochtief subsidiary to build one of Australia’s biggest solar farms
Pacific Partnerships, a subsidiary of Hochtief-owned Cimic Group is to build one of the largest solar farms in Australia
Kennards completes two acquisitions in Victoria
Company now has state network footprint of 39