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Japan: US$79b magnetic levitation train project raided

By  |  December 11, 2017

Obayashi, one of Japan’s ‘big four’ construction firms, on Monday, December 11, said Tokyo prosecutors have raided its offices on suspicion of “deceptive obstruction of business,” sending its shares tumbling as much as 8%.

After local media reported authorities were looking into bid-rigging related to construction of Central Japan Railway’s maglev project, Obayashi said in a statement that prosecutors had raided its office Friday on suspicion it used fraudulent information to obstruct business.

Prosecutors are investigating the bidding process for a contract to build a tunnel emergency exit which was won by a joint venture of Obayashi, Toda and a unit of Central Japan Railway Bloomberg reported. Bidding for a separate contract won by Obayashi, Maeda and the JR Central unit is also under investigation, the newspaper reported.

Employees at another of the “big four” constructors that is involved in the maglev project, Kajima underwent voluntary questioning by prosecutors, a company spokesman said.

Full Content: Bloomberg

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