More bid-riggers charged

25 April 2008

Japan: Japan's bid rigging scandal continues to grow with the Ministry of Land, Infrastructure and Transport suspending eight Japanese construction companies from participating in future Government projects. The companies have been charged with illegally fixing prices on defence-related public works projects.

The suspension follows the indictment of three Defence Facilities Administration Agency (DFAA) officials and eight company officials for allegedly rigging bids on construction projects at two US military bases in southern Japan (see IC September 2005 and IC March 2006). The indictments also cover alleged price fixing on projects over the past two years at the DFAA's Ichigaya complex in Tokyo.

The eight companies are Kajima Corp., Toa Corp., Tekken Corp., Taisei Corp., Obayashi Corp., Penta Ocean Construction Co., Shimizu Corp. and Nissan Rinkai Construction Co. They are now barred from bidding for in public works contracts for one to five months, with Taisei and Penta Ocean both receiving the maximum suspension of five months.

As IC went to press, Prime Minister Junichiro Koizumi and Defense Agency chief Fukushiro Nukaga agreed to disband the DFAA, which procures land and facilities for the US military and Japan's Self-Defense Forces.

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