Taisei, Kajima Officials Arrested over Maglev Project (News)
Tokyo, March 2 (Jiji Press)—Public prosecutors arrested two officials of major general contractors Taisei Corp. and Kajima Corp. on Friday for alleged bid-rigging over the Chūō Shinkansen magnetic levitation high-speed railway project.
The two are suspected of violating the antimonopoly law by conspiring, including with officials from industry competitors Obayashi Corp. and Shimizu Corp., in 2014 and 2015 to predetermine successful bidders from the four companies in auctions for the construction of maglev train stations, according to investigative sources.
The ¥9 trillion project of Central Japan Railway Co., or JR Tōkai, aims to open a maglev railway between Tokyo and Nagoya, central Japan, in 2027. The project is financed partly by low-interest state loans.
The arrested officials are Ōkawa Takashi, a 67-year-old former Taisei executive officer who is currently an adviser to the company, and Ōsawa Ichirō, 60, then deputy head of Kajima's Business Development Division.
They denied the allegations during questioning by the special investigation squad of the Tokyo District Public Prosecutors Office, the sources said.[Copyright The Jiji Press, Ltd.]