Prosecutors on Friday arrested the chairman of Fukushima-based contractor Sato Kogyo Corp. on suspicion of rigging bids for a public sewage system project ordered by the Fukushima Prefectural Government.

Katsumi Sato, 66, is suspected of conspiring with two accomplices to rig the bids for the project, which was to be built upstream of the Abukuma River.

Two alleged accomplices — Keiichi Yamaki, 47, an executive of Sato Kogyo, and Masao Tsuji, 59, head of an air conditioning equipment company and a key supporter of Fukushima Gov. Eisaku Sato — were arrested Monday.

The suspects allegedly prearranged contractors’ bids to help a joint venture between Sato Kogyo and Tokyo-based contractor Tokyu Construction Co. win the contract, prosecutors said.

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