Tokyo, Oct. 13 (Jiji Press)–Japan’s Fair Trade Commission is poised to recognize bid-rigging by six companies in contracts for railroad track maintenance for subway and other lines operated by the Tokyo metropolitan government in violation of the antimonopoly law, sources familiar with the matter said Tuesday. The FTC is set to issue cease-and-desist orders to five of the six and order them to pay a total of about 500 million yen in fines. The five companies are Totetsu Kogyo Co., listed on the Tokyo Stock Exchange’s Prime section, Tsuboi Industrial Co., Hayakawa Kensetsu, Nisshin Kogyo and Sankikensetsu Inc., a unit of Kyushu Railway Co., or JR Kyushu. Totetsu Kogyo, Tsuboi Industrial and Hayakawa Kensetsu are based in Tokyo, Nisshin Kogyo in Kawasaki, Kanagawa Prefecture, adjacent to the Japanese capital, and Sankikensetsu in the southwestern Japan city of Fukuoka. Tokyu Kidoh Kogyo Co. in Kawasaki is expected to avoid the cease-and-desist order and fine under a leniency program as it voluntarily reported the irregularities before the start of the antimonopoly watchdog’s investigation although it will be recognized to have violated the antimonopoly law along with the five firms. According to the sources, the six firms started conspiring several years ago to prearrange the winners of Tokyo metropolitan government contracts for track replacement and other maintenance work for the Toei Asakusa, Mita, Shinjuku and Oedo subway lines, the Toden Arakawa Line and the Nippori-Toneri Liner, all operated by the Tokyo government’s Bureau of Transportation. In most cases, specific companies won contracts for specific lines, the sources said. The FTC conducted on-site inspections of the six companies in November last year. The commission has already notified the firms of the planned administrative actions. It will conduct hearings with each company before formally deciding the measures. The FTC has also carried out an on-site inspection of the Bureau of Transportation. The probe is expected to continue. “It is true that we have received a notice (from the FTC),” Totetsu Kogyo said, adding, “As the investigation is still ongoing, we will refrain from commenting on details.” END [Copyright The Jiji Press, Ltd.]
