The bid-rigging scandal involving major bridge builders has again brought into public view the structural collusive relationship between private enterprise and the public sector. The scope of the criminal investigation -- which originally targeted projects ordered by local bureaus of the Land, Infrastructure and Transport Ministry -- has broadened to become the nation's biggest public-works bid-rigging scandal, with the recent arrest of a former board member of Japan Highway Public Corp.
In October 2004, the Fair Trade Commission raided about 70 bridge builders and found out that two contractor associations, K-kai and A-kai, were involved in rigging bids over the past four decades. K-kai consists of 17 major bridge builders while A-kai groups 30 smaller bridge builders.
Since May 23, the commission has filed accusations against bridge builders and company officials in connection with the projects ordered by the ministry, triggering criminal investigation by the Tokyo High Public Prosecutor's Office. On June 15, prosecutors indicted 26 firms belonging to K-kai and A-kai and eight company officials.