Obayashi connected to tunnel scam

Japanese construction firm Obayashi has been accused of leading the scandalous bid rigging scam targeting the 2004 Wakayama Prefecture tunnel projects, according to a report in The Japan Times.

The company’s head office in Osaka, as well as home of some of the suspected officials were raided by prosecutors from Osaka Prefecture last Wednesday in connection with the alleged scam.

According to reports from Japan, construction firms bidding for the tunnel projects told officials that Obayashi had played a leading role in rigging the bidding for the projects back in November 2004.

One of the winning bids for the tunnel project on National road 480, won by a consortium of Obayashi and two other contractors, cost 1.72bn yen, or around 97% of the government’s estimate.

Prosecutors raided the offices of contractors Hazama and Tokyu Construction, as well as the Wakayama regional office in September in connection with the same scam.

The owner of an Osaka based golf course has also been suspected of taking substantial bribes and acting as a broker for the bid rigging.

The investigation continues.