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Bridge, highway execs caught in bid-rigging

Prosecutors on July 12 arrested a former board member of Japan Highway Public Corp. and four officials of major bridge builders for alleged bid-rigging on projects ordered by the government-affiliated body.

Arrested were Sozo Kanda, 70, a Japan Highway retiree who served as an adviser to Yokogawa Bridge Corp.; Takashi Yokoyama, 59, also from Yokogawa Bridge; Takashi Tanaka, 54, from Mitsubishi Heavy Industries Ltd.; Masami Seimiya, 49, from Ishikawajima-Harima Heavy Industries Co.; and Kenichi Shimizu, 58, of Kawada Industries Inc.

In the widening bid-rigging scandal involving bridge builders that have been repeatedly warned over anticompetitive practices, 26 firms and eight corporate executives have already been indicted on charges of violating the Antimonopoly Law.

The arrests were the first concerning alleged bid-rigging on projects placed by Japan Highway. Previous cases concerned projects ordered directly by the government.

Investigators suspect the bridge builders fostered cozy ties with highway corporation officials over the years by allowing Japan Highway retirees to land jobs with them, a practice known as "amakudari," or descent from heaven.

The five allegedly conspired to rig bids for bridge construction projects financed by the public corporation in fiscal 2003 and 2004 in violation of the Antimonopoly Law, which bans acts that stifle competition.

All five are believed to have played key roles in deciding which firm would win each bid through two contractor networks, K-kai, a bid-rigging group of 17 major bridge-building firms, and A-kai, which groups 30 smaller bridge builders. (Kyodo)

Shukan ST: July 22, 2005

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National News Bridge, highway execs caught in bid-rigging Prosecutors on July 12 arrested a former board member of Japan Highway Public Corp. and four officials of major bridge builders for alleged bid-rigging on projects ordered by the government-affiliated body. Arrested were Sozo Kanda, 70, a Japan Highway retiree who served as an adviser to Yokogawa Bridge Corp.; Takashi Yokoyama, 59, also from Yokogawa Bridge; Takashi Tanaka, 54, from Mitsubishi Heavy Industries Ltd.; Masami Seimiya, 49, from Ishikawajima-Harima Heavy Industries Co.; and Kenichi Shimizu, 58, of Kawada Industries Inc. In the widening bid-rigging scandal involving bridge builders that have been repeatedly warned over anticompetitive practices, 26 firms and eight corporate executives have already been indicted on charges of violating the Antimonopoly Law. The arrests were the first concerning alleged bid-rigging on projects placed by Japan Highway. Previous cases concerned projects ordered directly by the government. Investigators suspect the bridge builders fostered cozy ties with highway corporation officials over the years by allowing Japan Highway retirees to land jobs with them, a practice known as "amakudari," or descent from heaven. The five allegedly conspired to rig bids for bridge construction projects financed by the public corporation in fiscal 2003 and 2004 in violation of the Antimonopoly Law, which bans acts that stifle competition. All five are believed to have played key roles in deciding which firm would win each bid through two contractor networks, K-kai, a bid-rigging group of 17 major bridge-building firms, and A-kai, which groups 30 smaller bridge builders. (Kyodo) Shukan ST: July 22, 2005 (C) All rights reserved