Japan's Dentsu, others indicted over alleged Olympic contract bid
rigging
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[February 28, 2023]
By Satoshi Sugiyama and Kaori Kaneko
TOKYO (Reuters) -Japanese prosecutors on Tuesday indicted six
companies including advertising giant Dentsu Group and seven
individuals over the suspected rigging of bids worth $320 million
for the Tokyo 2020 Olympics and Paralympics.
The indictments follow months of investigations into alleged
corruption in the planning and sponsorship of the Tokyo Games, held
in 2021 after a COVID-19 postponement.
In response to the indictment, Dentsu said it had set up a committee
of outside experts, chaired by a former Supreme Court judge, to
review and investigate the case. Dentsu Japan's CEO and other
executives would also return a portion of their compensation for six
months, it said.
"The company takes this situation seriously and offers its sincere
apologies to its business partners, shareholders, and all other
relevant parties for any inconvenience or concern this may cause,"
Dentsu said in a statement.
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Hakuhodo DY Holdings Inc, Tokyu Agency Inc, Fuji Creative
Corporation, Cerespo Co and Same Two Inc were also indicted, along
with officials who were in charge of the bidding at the time,
prosecutors said.
Hakuhodo, Tokyo Agency and Fuji Creative Corp parent Fuji Media
Holdings also issued statements of apology. Cerespo had no immediate
comment, while Same Two declined to comment.
The Tokyo Games have also been tainted by a separate scandal in
which Haruyuki Takahashi, a former member of the Tokyo 2020 Olympics
board and an ex-Dentsu executive, was arrested last year on
suspicion of receiving bribes from Olympic sponsors.
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![](../images/022823PIX/sports9.jpg)
A man speaks on his mobile phone near a
logo of Dentsu Co. at the entrance of the company headquarters in
Tokyo July 12, 2012. REUTERS/Issei Kato
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Tuesday's indictment came after Japan's Fair Trade
Commission filed a criminal complaint against the companies and
individuals, citing a "huge" societal impact and the size of the
contracts.
It said the collusion took place in 2018 and covered contracts
estimated to be worth a total of 43.7 billion yen ($320.33 million),
including some for test events ahead of the Games.
"We determined that this is a malicious and serious case that will
have a broad impact on people's lives," commission investigator Goh
Okumura told a media briefing.
Dentsu, Cerespo and Fuji Creative have already been barred from
bidding for contracts at the industry, foreign and education
ministries for nine months.
Executives from advertising firm ADK Holdings, business suits
retailer Aoki Holdings and publishing firm Kadokawa have been
arrested in connection with the separate bribery case.
($1 = 136.4200 yen)
(Reporting by Satoshi Sugiyama, Kantaro Komiya, Kaori Kaneko, Tim
Kelly; Writing by Chang-Ran Kim; Editing by Edwina Gibbs, Robert
Birsel)
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