Japan: Bullet train works plagued by bid rigging

Tokyo prosecutors raided the headquarters of Japanese construction firms Taisei and Obayashi on Tuesday, December 19, over alleged antitrust violations linked to US$80 billion worth of magnetic levitation (maglev) train projects.

According to ABC, Taisei, one of the so-called “big four” of Japan’s construction firms, is fully cooperating with the investigation, company spokesman Takayuki Renbutsu said.

Separately, prosecutors raided Obayashi’s offices over suspected antitrust breaches, a company spokeswoman said. The firm is already under investigation for suspected bid-rigging over maglev-related contracts.

All the contractors have promised to cooperate fully with the investigation into the alleged violations of anti-trust laws. Reports said prosecutors are looking into alleged “obstruction of business” because the contracts for the line, called the Linear Chuo Shinkansen, are for private-sector, not public contracts.

Full Content: ABC News

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