The Japan Fair Trade Commission (JFTC) plans to issue cease-and-desist orders to four road maintenance companies for rigging bids on Metropolitan Expressway cleaning contracts. Two of the firms, including Tokyo-listed Subaru Enterprise, face fines totaling about ¥500 million ($3.3 million). The collusion dates back to around 2017, highlighting irregularities in the expressway's procurement process.
The Japan Fair Trade Commission (JFTC) intends to issue cease-and-desist orders to four road maintenance companies accused of colluding to rig bids for cleaning services on the Metropolitan Expressway. Informed sources indicate that the watchdog will also impose fines of about ¥500 million ($3.3 million) on two of the firms, one being Subaru Enterprise, listed on the Tokyo Stock Exchange's Standard section.
In September of the previous year, the JFTC carried out on-site inspections at the four companies and the Metropolitan Expressway operator. The companies have been notified of the proposed penalties, and the commission will finalize its decision after reviewing their responses. The investigation into the expressway operator continues.
According to sources, the collusion began around 2017, involving predetermined winners in competitive bidding for tasks like road cleaning and anti-icing operations. Bids occur every two years, with the over 320-kilometer network divided into four sections. Contracts per section ranged from over ¥1 billion to around ¥2 billion, and each company secured one under the arrangement.
This case underscores the need for fair competition in public infrastructure maintenance. The JFTC's actions could enhance transparency in the sector.