Mar 03 (NHK) - Tokyo prosecutors have arrested current and former executives of 2 out of the 4 major contractors suspected of being involved in bid-rigging over a maglev train project.
Investigations are now under way over the massive project ordered by Central Japan Railway Company to build an ultra-high speed train link between Tokyo and Osaka. The project has received about 28 billion dollars in state loans. That's one third of the total construction cost.
The 4 contractors are Obayashi Corporation, Kajima Corporation, Shimizu Corporation and Taisei Corporation.
Officials from the Tokyo District Public Prosecutors Office arrested a former executive from Taisei and a current Kajima executive on Friday.
The 2 are suspected of colluding with officials from Obayashi and Shimizu in deciding the winners of orders for station-construction projects ahead of the bidding. The act is in violation of Japan's anti-monopoly law.
Both are denying the charges.
Sources close to the issue say officials at Obayashi and Shimizu have admitted to their involvement in bid-rigging.
