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Large bid-rigging probe launched in Tokyo airport case

Authorities launched raids yesterday aimed at Japan's main international airport and several electronics companies over suspected bid-rigging in electrical installation projects at the airport, media reports and officials said.

Tokyo prosecutors suspect the Narita International Airport Corp and six electronics companies rigged bids for the projects in 2003 at an airport cargo building, the Yomiuri newspaper said.

The case is the latest in a series of bid-rigging scandals to surface in recent months. Japan has long been criticized for the widespread practice in public works projects, which virtually shut out foreign competitors.

Airport officials had allegedly leaked planned project costs to the companies -- Mitsubishi Electric Corp, Toshiba Corp, Hitachi Ltd, Nissin Electric Co, Meidensha Corp and Fuji Electric Systems Co -- the report said.

The suspected bid-rigging involved an installation project worth ?200 million (US$1.68 million) in November 2003, before the airport's privatization last year, the paper said.

Kyodo news agency said investigators from the Tokyo District Prosecutors' Office began raiding the companies yesterday morning.

A Mitsubishi Electric spokeswoman said investigators arrived at their headquarters in the morning to search for the evidence.

"It is truly regrettable that we are being investigated by the prosecutors' office," the company said in a statement. "We take it seriously and will fully cooperate in the investigation."

Airport officials, however, said yesterday morning that investigators had not arrived.

Prosecutors refused to comment on the reports.

Kyoto news agency reported that prosecutors are also investigating the six companies over alleged bid-rigging in separate government projects ordered by the Defense Agency.

Last week, police arrested 11 officials from several medium-sized contractors over alleged bid-rigging for seawall works ordered by the Tokyo Metropolitan Government.
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