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Three former DFAA officials indicted on additional charges of bid-rigging

The Tokyo Public Prosecutor's Office on March 14 indicted three former Defense Facilities Administration Agency officials on additional charges of bid-rigging on seven construction projects at the U.S. Iwakuni and Sasebo bases to benefit the construction companies where they took posts after retiring from the DFAA. The three former DFAA officials were indicted on February 20 on charges of bid-rigging involving the DFAA's purchase of air-conditioning equipment.

The public prosecutors brought summary indictments to general contractor construction and marine construction company officials, ordering a fine of 500,000 yen.

In the runway extension project at the U.S. Iwakuni base, the amount of the contract undertaken is 141.7 billion yen. The Fair Trade Commission estimates an 18.6 percent overcharge due to bid-rigging. This means that general contractor construction companies received 26.4 billion yen in tax money in illegal profits.

Bid-rigging is based on "complicity" between the orderers and the constructors. In order to eliminate the cozy ties between administrative authorities and business circles, it is essential to disclose all the facts before the Diet and prohibit retired government officials to take posts in related businesses.
- Akahata, March 15, 2006