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
First Grove GMK6400-1 in North America
The largest model in Grove’s six-axle all-terrain range was delivered to Heaton Erecting in Atlanta.
EFCA: Construction consultants push sustainability and digital agenda
The Federation of European Engineering Consultancies, at 30, renews its commitment to represent the interests of consulting engineers
US software house buys Mistral
French developer of ERP systems for rental and dealers gets new owner