The House of Representatives approved legislation Thursday designed to dissuade public officials from engaging in bid-rigging activities.
The bill would allow the Fair Trade Commission to order those in charge of national and local public organizations to take action if any officials serving under them are found to have been involved in bid-rigging activities.
The government and government agencies would also be required to demand compensation whenever officials are deemed to have damaged the interests of the government or other public bodies either through willfulness or grave negligence.
The bill was proposed by members of the ruling bloc, comprising the Liberal Democratic Party, New Komeito and the New Conservative Party.
Following its passage through the Lower House, the bill will be sent to the House of Councilors for enactment by the end of the current Diet session.
It targets public organizations at both the national and local levels, quasi-government bodies that are majority-funded by organizations of this kind, along with ventures involving both the public and private sectors.
Upon an FTC directive, the heads of these organizations would have to bring any involvement in bid-rigging activities by their officials to a halt, disclose details of their actions and propose a compensation figure.
A Lower House committee that scrutinized the bill rejected an opposition proposal that a provision be added to force remedial action in cases where officials have merely condoned bid-rigging.