Japan Press Weekly

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2012 September 12 - 18 [SCANDAL]

Akahata obtains document verifying bid-rigging by defense ministry

Akahata has obtained an internal document which verifies bid-rigging, which is currently under investigation, conducted by the Defense Ministry and defense manufacturers over helicopter development.

The document provides the minutes of a secret meeting held between a defense ministry official and officials of a defense manufacturer, Kawasaki Heavy Industries Ltd., before a bid for a public contract to develop a new multipurpose helicopter UH-X was officially announced.

According to the minutes, together with the ministry official and four Kawasaki officials, an employee of Mitsubishi Heavy Industries, Ltd. (MHI) was also present at the meeting which took place on May 18, 2011 at the ministry’s Air Systems Research Center located in Tokyo’s Tachikawa City.

When Akahata asked MHI about this employee by giving his name and position, the company admitted that the employee is still working at the company.

The document shows that at this meeting, the ministry official gave the Kawasaki officials information such as specific functions needed for the new helicopter so that the manufacturer would have an advantage over any rival company in the bidding.

In Japan, only three makers have the ability to develop helicopters which are used for military purposes. They are MHI, Kawasaki, and Fuji Heavy Industries Ltd.

In September 2011, after the secret meeting, the bidding on the development of the helicopter was announced, and Kawasaki and Fuji applied for the bidding.

However, in March, the Defense Ministry decided to award Kawasaki the contract amounting to 3.52 billion yen without starting the competitive bidding process. MHI last November received from the ministry a contract to provide technical support for new engines for the UH-X helicopter.