The special investigation squad of the Tokyo District Public Prosecutors Office has arrested a former president of Pacific Consultants International, a Tokyo-based consultancy for overseas construction projects, and three others on suspicion of bribery in connection with a project in Vietnam financed by the Japanese government's official development assistance (ODA).
This case, however, may represent only the tip of an iceberg. Suspicions have been raised over collusive ties between Japanese companies and the politicians and officials of countries that receive ODA for infrastructure construction.
PCI had won orders worth ¥3.1 billion for consultation services related to a road construction project carried out by the Ho Chi Minh City People's Committee, or the city government, and financed by Japanese ODA in October 2001 and March 2003. The PCI former president, Mr. Masayoshi Taga, and three others are suspected of having given $600,000 (about ¥64 million) in December 2003 and $220,000 (about ¥26 million) in August 2006 to the bureau chief of the city government in charge of public works. The total amount of alleged bribes is 1,188 times Vietnam's per capita gross national income of $690.