FTC Raids 6 Water-Treatment-Plant Makers Over Bid Rigging
By Kyodo News International, Tokyo
Apr. 25–TOKYO — The Fair Trade Commission raided the offices of six water-treatment-plant makers Tuesday in an investigation into their alleged involvement in rigging bids for local government contracts, investigation sources said.
The companies raided were Sumitomo Heavy Industries Ltd., Kurita Water Industries Ltd., Ataka Construction & Engineering Co., Kubota Corp., Nishihara Environment Technology Inc. and Takuma Co.
It is the first time the antitrust watchdog has raided a company by serving a court-issued search warrant since the revised Antimonopoly Law was implemented in January.
The raids, conducted with the special investigation squad of the Osaka District Public Prosecutors Office, will continue Wednesday.
“It is regrettable that we are in a situation to face an investigation. We will fully cooperate in the investigation,” a Kubota spokesman said.
An official of Nishihara Environment Technology said the company is cooperating in the investigation, but declined to comment on further details.
Officials of other companies also said they cannot elaborate on details.
After the raids, the FTC is expected to file criminal complaints with prosecutors against the companies in connection with alleged bid rigging in five projects.
These include one ordered by the city of Hannan, Osaka Prefecture, and others by Shizuoka, Fukuoka and Kumamoto prefectures, tenders for which were invited February and March last year.
The FTC suspects the companies repeatedly rigged bids for local government contracts for about 30 years.
Tuesday’s raids are part of the FTC’s investigations into 11 major water-treatment-plant makers — the six as well as Ebara Corp., JFE Engineering Corp., Mitsui Engineering and Shipbuilding Co., Mitsubishi Heavy Industries Ltd. and Hitachi Zosen Corp.
The companies are suspected of conspiring to select bid winners and fix bid prices for contracts to build water-treatment plants from local governments so as to prevent real competition, keep bid prices high and share the contract orders among them.
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