Japanese Competition Authority Raids Contractors over Bid Rigging

On May 16 and May 17, the Japanese Fair Trade Commission (FTC) raided approximately 20 contractors over bid-rigging allegations in projects ordered by the Japanese Defense Facilities Administration Agency as well as engineering and construction works at a U.S. military facility in Iwakuni, Yamaguchi Prefecture in conspiracy with officials of the Defense Facilities Administration Agency.
Three officials from this agency were arrested in January on suspicion of colluding with private-sector contractors in rigging bids for work at a Japanese Defense Agency hospital in Tokyo. Bid-rigging, or dango, as it is known in Japanese, continues to be a central problem in the construction industry by restricting competition among firms.