NAGO, Okinawa Pref. — Last month an executive of a major construction company in Nago confessed what was considered a long-held industry secret in this city that is poised to be the replacement site for the Futenma military base: For decades most local contractors had rigged bids for public works projects, and small players still do.

"We were told (by city officials) not to compete with each other. We were told that otherwise we would not be nominated (by the city) as bidders," the executive told The Japan Times on condition that neither he nor his company would be identified.

The practice of "dango" illegal bid-rigging on government public works projects — in which bidders collude to choose a winner among themselves on a rotating basis while avoiding competition — had continued at the initiative of the Nago Municipal Government for several decades, the executive said.