[JP] Senior executives of Taisei and Kajima found guilty of bid-rigging

[maglev]

Senior executives of Taisei and Kajima found guilty of bid-rigging

The Tokyo High Court on March 2, 2023, upheld a lower court's guilty verdict against Taisei Corp. and Kajima Corp. for bid-rigging in the Chuo Shinkansen bullet train project.

The High Court, presided over by Judge Toshikazu Ishii, rejected the defence's appeal against the Tokyo District Court's ruling, which ordered the two major general contractors to pay 250 million yen each in fines and sentenced former Taisei executive Takashi Okawa, 72, and former Kajima executive Ichiro Osawa, 65, to 18 months' imprisonment each, suspended for three years.

At the appeal hearing, the defence claimed that Central Japan Railway Co. (JR Tokai) which will operate the maglev line, had decided to award contracts to certain contractors and that there was therefore no competition. The judge rejected the claim. According to the ruling, Okawa and Osawa, in conspiracy with officials of two other major general contractors - Obayashi Corp. and Shimizu Corp., restricted competition by agreeing on contract winners in advance and informing each other of their planned bid prices for three construction sections between April 2014 and August 2015.

Info based on a Report by Jiji Press Tokyo, March 2, 2023 https://www.nippon.com/en/news/yjj20230 ... gging.html Accessed 2023-03-02

[latestnews]

鹿島と大成建設、二審も敗訴 リニア談合、排除命令で
Kashima and Taisei Lose Appeal in High-Speed Maglev Bid-Rigging Case – Tokyo High Court Upholds Antitrust Ruling

Info based on Kyodo News, quoted by https://www.msn.com/ja-jp/news/national ... r-AA1EO2q1 Accessed 2025-05-15

In a high-profile bid-rigging case involving construction work for Japan's Chuo Shinkansen (Linear Central Shinkansen) – a next-generation magnetic levitation (maglev) train line operated by JR Central – two of Japan’s leading general contractors, Kashima Corporation and Taisei Corporation, have once again lost in court. On May 15, the Tokyo High Court dismissed the companies' appeals and upheld a lower court ruling by the Tokyo District Court, which had rejected their lawsuits seeking to overturn a cease-and-desist order issued by Japan’s Fair Trade Commission (JFTC). The JFTC had found the firms in violation of the Antimonopoly Act due to "unreasonable restraint of trade."

The administrative order, issued in December 2020, accused Kashima, Taisei, and two other major general contractors—Obayashi Corporation and Shimizu Corporation—of engaging in illegal coordination to predetermine which firm would win contracts for the construction of new maglev stations at Shinagawa and Nagoya.

In their legal defense, Taisei argued that no genuine "competition" had existed between firms, claiming this precluded the legal foundation for an antitrust violation. Kashima, for its part, contended that the project was an "unprecedented large-scale construction" effort, asserting that only firms with extensive preexisting preparations could realistically execute the work—making fair competition implausible.

Nonetheless, the court sided with the JFTC’s assessment that the coordinated actions of the firms amounted to a clear restriction of fair competition under Japanese antitrust law.

[latestnews]

[JP] Supreme Court Finalizes Guilty Rulings for Taisei, Kajima in Maglev Bid-Rigging Case

Source: Jiji Press (via Nippon.com)
Original title:
Guilty Rulings to Be Finalized for Taisei, Kajima over Maglev Bid-Rigging
Date: September 15, 2026, 23:44 (JST)
Original language: English
Web link: https://www.nippon.com/en/news/yjj2026091500874/
Accessed: September 15, 2026

Japan’s Supreme Court on September 15 finalized guilty rulings against Taisei Corp. and Kajima Corp. for bid-rigging on the Chuo Shinkansen maglev line project, rejecting their appeals.

The Third Petty Bench, led by Justice Eriko Watanabe, unanimously upheld 18-month prison sentences (suspended for three years) for former executives Takashi Okawa (75, Taisei) and Ichiro Osawa (69, Kajima), plus ¥250M (approx. €1.56M / $1.67M) fines on both firms. Obayashi and Shimizu’s fines were already finalized after voluntary reporting. The court cited collusion among the four companies’ senior officials, which undermined competition and enabled contract price manipulation.

[Miss Maglev]

size=150][JP] Supreme Court Finalizes ¥250M Fines for Taisei, Kajima in Maglev Bid-Rigging Case[/size]

Source: Tokyo News Media
Date: September 14, 2026
Original language: Japanese

Web link: https://tokyonewsmedia.com/archives/28004

Accessed: September 16, 2026

On September 14, Japan’s Supreme Court’s Third Petty Bench (Chief Justice Eriko Watanabe) rejected appeals from Taisei Corp., Kajima Corp., and their former executives, finalizing ¥250M (approx. €1.56M / $1.67M) fines on each firm and 18-month suspended prison sentences for ex-executives Takashi Okawa (75) and Ichiro Osawa (69).

The 2014–2015 case involved bid-rigging for Shinagawa and Nagoya station construction on the Chuo Shinkansen maglev line, where senior officials from the “Super Zenekon” quartet colluded to fix prices and pre-select winners. Lower courts had ruled: “[Translated quote] They contacted each other to create differences in bid prices, and it was a crime accompanied by thorough cooperative acts,” substantially restricting competition; the Supreme Court fully upheld these findings. With Obayashi (¥200M / approx. €1.25M / $1.33M) and Shimizu (¥180M / approx. €1.13M / $1.20M) fines already finalized, the ruling marks the end of an 8-year legal saga, delivering a strict judicial rebuke to opaque industry practices in the ¥5.5T (approx. €34.4B / $36.7B) project.

[latestnews]

[JP] Kajima and Taisei Suspend Industry Activities After Maglev Bid-Rigging Convictions

Source: Nikkei
Original title:
鹿島と大成建設、ゼネコン業界団体の活動自粛　リニア談合の有罪受け
Date: September 18, 2026, 16:53
Category: Construction/Real Estate
Original language: Japanese
Web link: https://www.nikkei.com/article/DGXZQOUC ... 0C2000000/
Accessed: September 18, 2026

On September 18, the Japan Federation of Construction Contractors (Nikkenren) announced that Kajima Corp. and Taisei Corp. will voluntarily suspend their activities within the organization following their finalized guilty verdicts for bid-rigging in the Chuo Shinkansen maglev line construction.

Both companies’ top executives absented themselves from Nikkenren’s regular press conference that day. Vice Chairman Kenji Hasuwa (Obayashi Corp.) stated: “[Translated quote] It is truly regrettable that two member companies have received guilty verdicts. Nikkenren will continue to strongly demand all member companies to thoroughly comply with laws and regulations, and to uphold compliance.” He also emphasized efforts to rebuild trust in the construction industry as a key infrastructure sector.

Previously, Obayashi and Shimizu—also convicted in the same bid-rigging case—had suspended their Nikkenren activities for about six months, combining a 120-day business suspension under the Construction Business Act and the period until their verdicts were finalized. The suspension period for Kajima and Taisei remains undecided.

[latestnews]

[JP] JR Central President Niwa: Contractor Suspension Will Not Affect Opening Timeline, Despite Maglev Bid-Rigging Penalty
Source: Jiji Press (Jiji.com)
Original title:
丹羽ＪＲ東海社長：ゼネコン処分、開業時期影響ない　リニア談合で
Date: October 28, 2026, 19:09
Original language: Japanese
Web link:  https://www.jiji.com/jc/article?k=2026102800982
Accessed: October 28, 2026

At a press conference in Nagoya on October 28, JR Central President Shunsuke Niwa addressed the 120-day business suspension order that the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) imposed on Taisei Corporation—contractor for the Chuo Shinkansen's Shizuoka section—in the wake of the maglev bid-rigging scandal.

Key statements:
President Niwa said the penalty will not affect the maglev line's opening timeline: "I do not believe there will be any impact."

Regarding when the opening date will be announced, he said only: "As before, we are proceeding with study toward indicating it within the year."

This is consistent with JR Central's earlier position that the Kita-Shinagawa shield machine stoppage and the Shizuoka section delay would not affect the overall opening schedule, and with President Niwa's earlier commitment to "steadily proceed with the maglev construction" while strengthening public communications.

[latestnews]

[JP] Shizuoka Section Construction Start Expected Spring 2027 or Later: JR Central President "No Impact on Overall Construction Timeline Expected"
Source: Chukyo TV News NNN (Chukyo TV News NNN, via Nippon TV news site)
Original title:
リニア静岡工区の着工は来年春以降の見通し JR東海社長「全体の工期に影響があるとは思っていない」
Date: October 28, 2026, 15:31
Original language: Japanese
Category: Society
Web link:  https://news.ntv.co.jp/n/ctv/category/s ... 418e265763
Accessed: October 28, 2026

Chukyo TV's report on JR Central's regular press conference on October 28 adds context to the Jiji report summarized just before:
Regarding the Chuo Shinkansen Shizuoka section—where early construction start had been the goal—MLIT issued a four-month business suspension order against contractor Taisei Corporation on October 23, running until March next year, due to the maglev bid-rigging scandal. As a result, construction is now expected to begin no earlier than spring 2027.

President Shunsuke Niwa's statements at the press conference:

"The business suspension period itself is not significant compared to the overall construction schedule," and therefore "I do not believe it will affect the overall construction timeline."

On the opening date for the Shinagawa–Nagoya maglev segment, JR Central is continuing to study the plan to indicate it within the year, as previously stated.