OSAKA -- Investigators raided the Osaka Prefectural Assembly's secretariat Monday in connection with the arrest of an assembly member on suspicion of leaking bid-related information to a construction company.
A special Osaka Prefectural Police investigative squad searched several locations, including the assembly office, to collect evidence to indict Masateru Kitahama, 59, who was elected to the assembly from Osaka's Miyakojima Ward. Kitahama is under arrest on suspicion of receiving bribes from the contractor in exchange for leaking bid-related information on three occasions in connection with prefecture-run housing facility construction for four years up to June.
Later Monday, Kitahama submitted a letter of resignation to the assembly chairman, Yasuyuki Yokokura, who accepted it immediately.
Kitahama allegedly received 2 million yen for leaking the prospected contract price of a prefectural housing facility to Yasukatsu Matsuura, the president of the construction firm, in Osaka in June.
He also allegedly received monetary rewards for leaking bid-related information in 1995 and 1997.
Matsuura is also under arrest on suspicion of bribing Kitahama.
The investigative team also suspects three officials of the Osaka Prefectural Government's construction bureau were involved in the scheme.
A three-year statute of limitations has run out for two out of the three officials who were allegedly involved in the scheme in 1995 and 1997, investigators said.
Officials at the bureau reckoned Monday that such an information leak would be impossible now because the local government has improved its bidding system.
Meanwhile, some taxpayers in Osaka voiced protests over the prefecture's expected payment to Kitahama of a 2.5 million yen winter bonus.
He is eligible to receive it because he maintained the seat up until Friday.