Tokyo prosecutors raid the headquarters of Japan Highway Public Corp. in Tokyo on June 29 in connection with the bid-rigging scandal.

The Tokyo High Prosecutor's Office arrested Sozo Kanda, a 70-year-old former board member of Japan Highway Public Corp.

Also arrested were four former executives of construction giants Mitsubishi Heavy Industries Ltd., Ishikawajima-Harima Heavy Industries Co., Yokogawa Bridge Corp. and Kawada Industries Inc.

Prosecutors raided the offices of the highway agency June 29 after charges were filed against 26 Japanese companies and eight executives for allegedly colluding to divvy up 180 contracts worth a total of ¥71 billion in fiscal 2003 and 2004.

The companies allegedly set up a system of predetermining prices and winners among 49 companies, even before bidding began for steel bridge construction contracts offered by the Ministry of Land, Infrastructure and Transport.

The Japan Times Weekly: July 16, 2005
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