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Bid-rigging over U.S. military construction is dual waste of tax money
Akahata editorial

Suspicions have recently arisen that the construction of an offshore runway at the U.S. Marine Corps Iwakuni Air Station and the construction of a quay at the U.S. Sasebo Naval Base may have been part of bid rigging schemes that are linked to job opportunities given to retiring senior Defense Facilities Administrative Agency officials, including DFAA technical counselors. These facilities have been constructed with the so-called "sympathy" budget which the Japanese government has no treaty obligation to provide.

Ultimate waste

The bid-rigging scheme initiated by former government officials who obtained executive positions at general contractor construction companies after retirement, is a criminal act because it involves enormous amounts of tax money being channeled to contractors taking advantage of collusive relations arranged by former senior government officials. It is intolerable that the they have rigged biddings to waste tax money exclusively for the U.S. forces.

The "sympathy" budget is in contravention even of the Japan-U.S. Status of Forces Agreement (SOFA) which provides that the United States pays for the maintenance of its forces in Japan and that Japan is expected to provide the U.S. forces with base sites. The problem is that tax money has been further wasted by the bid rigging schemes.

The construction of a runway at the U.S. Iwakuni base, for which bid-rigging may have taken place, is the biggest contract awarded by the DFAA. The total cost of 240 billion yen is funded by the "sympathy" budget in order to move the present runway one kilometer offshore under the pretext of avoiding noise pollution. The fact is that the base will be substantially enlarged and its functions strengthened by widening the base area by 40 percent and providing the base with two-track runways.

The Japanese funding system using the so-called "sympathy" budget began in 1978 under then Defense Agency Director General Kanemaru Shin (deceased), who said that Japan should respond to an increased share of the burden in the cost of stationing U.S. forces in Japan with a spirit of sympathy. Initially, Japan was just paying for the labor cost of Japanese employees at U.S. bases. Japan's payment eventually snowballed at every request of the United States calling for stationing its forces in Japan at lower costs for the U.S. side. To date, about 2 trillion yen has been spent on constructing facilities at these bases.

The DFAA has already awarded contracts for a total of 180 billion yen at the U.S. Iwakuni base since 1996. Documents submitted to the Diet show that the ratio of contract price to the estimated price in bids for public works projects using so-called "sympathy budgets" was more than 95 percent. Most of predetermined price was set in line with the price offered by general construction contractors, which gives contractors enormous profits.

Around Iwakuni City in Yamaguchi Prefecture where the U.S. Iwakuni base is located, a growing number of citizens as well as surrounding municipalities are opposing the plan to relocate the U.S. carrier-borne aircraft unit from the U.S. Atsugi Navy Air Facility in Kanagawa Prefecture under the U.S. military realignment strategy. The strengthening of the Iwakuni base is actually underway in defiance of the initial promise that the planned expansion of the base associated with the construction of a new runway would not impose further burdens on the local municipalities.

In the U.S. military realignment plan, the DFAA plays a part in restraining residents and municipalities from taking actions against the strengthening of U.S. bases. The DFAA has been betraying the public trust by its role in bid-rigging for public works projects using the "sympathy budgets." This is a serious problem for the public because they are to be forced to live under the threat of the U.S. bases in addition to shouldering heavier taxes.

JCP calls for abolition of 'sympathy budgets'

The Diet has begun discussing the 2006 government budget in which 232.6 billion yen is allocated as "sympathy budget" for funding the stationing of U.S. forces in Japan. This is a wasteful use of tax money that should not have been allowed from the beginning. The "sympathy budget" must be abolished.

In order to cut off the cozy ties between bureaucrats and corporations, it is essential to thoroughly investigate into the collusive bidding scandal and totally prohibit re-employment of retired government bureaucrats in the private sector.
- Akahata, February 7, 2006