Japan Fair Trade Commission
Towards Fair and Free competition
Today, can you tell us about collusion?
What is Collusion?
Inspector Shirokuma Kaede
Inspector Koshobu Tsutomu
Yes.
In bidding for public works projects, and so on,
Company B can be selected this time, so next time please select our company.
Please give us XX yen so that we can win the bid this time.
The next bid after that, please select us
Bid Box
Bid Rigging is
In bidding for public works projects, companies discuss with each other in advance and agree on who will win the bid and for how much.
companies discuss in advance of the bids
to agree on who will win the bid
and at what price.
So rivals join forces behind the scenes, huh?
Small Companies
National Government
Local Government
Large Company
There is also a form of government collusion in which
even national and local governments join forces.
So everyone is working hand in hand with everyone else.
But, what happens when you let go of that hand?
What?
Guardians of Competition
- What were you doing? - I found it in the prosecutor's vault.
Why you joined the JFTC,
and the fact that you were helping with investigating other collusion cases.
Does this have anything to do with it?
Deposition Transcript
Koshobu Makoto
Lacter Construction
Japan Fair Trade Commission - Honjo Satoko
Bidders of civil engineering works ordered by the Shikoku Regional Development Bureau of the Ministry of Land, Infrastructure, Transport and Tourism (MLIT)
Inspector in charge - Honjo Satoko
Lacter Construction Company
Koshobu Makoto
Shikoku Branch Office
- I'm back. - Good work.
Where have you been, Honjo?
2007 JFTC Shikoku Branch Office
There's still the case for summary disposition of unfair dumping.
If that's the case, it's over now.
Eh?
- I left the report here for you... - Eh?
Shikoku Branch Office Inspector Honjo Satoko
- Eh? - Ah, here it is.
Ah...hahaha...
And I was able to get an interview with a business partner about the Super Nakamaru case.
I should be able to submit the final report by the end of this week.
- I see. - As expected of a career bureaucrat.
Shikoku Branch Office Chief Inspector Uenuma Shintaro
Shikoku Branch Office Inspector Mijima Osamu
They work fast, don't they?
Ha ha...! Just as I anticipated.
Alright! Let's start the meeting for the new case.
Okay.
We received a tip the other day
about alleged collusion in a road improvement project in the Matsuyama district of Ehime Prefecture.
A certain major general contractor is suspected to be at the center of it.
- That company is... - Lacter Construction.
- That's right. - Anyone would think so.
They are one of the four major general contractors, commonly known as the Big Four.
But the date, time and place of the collusion,
is managed by Lacter Construction.
But I can't seem to get any information out of them.
Hmmm...
Do you have any good ideas, Honjo?
Lacter Construction Sales Division General Manager Kinoshita Kenichi
What does the JFTC want with us?
We'd like to talk to you about the Matsuyama area road improvement project.
Lacter Construction Ehime Branch
Kinoshita-san.
We received a tip that collusion was involved in the bidding process.
Collusion?
We believe Lacter Construction is coordinating it.
Are you kidding me? Do you have any proof?
Proof...
I knew it.
Just to be sure, can we talk to one of your other employees?
I decline. Unlike you guys, we're very busy.
Now, that's enough. Please leave.
- Ah, no, but... - I understand.
Before we leave, may we use your restroom?
This way, please.
That's great, Mishima, go ahead.
Oh, excuse me.
Construction Schedule
Kinoshita Kenichi
I didn't want to use the restroom at all.
But Honjo-san, you backed out pretty easily.
- I didn't leave empty handed. - Eh? Could it be...?
"Investigation Report"?
"Number of employees: 14. Capital: 10 million yen."
What's this about?
A big company like Lacter Construction,
investigating such a small construction company.
Don't you think it's strange?
Koshobu Construction
Koshobu is an unusual name, isn't it?
Yes.
Thank you.
We look forward to working with you again.
I've dealt with Lacter a few times.
Koshobu's Father Koshobu Makoto
Have you heard any bad rumors?
- Bad rumor? - For example, collusion.
Collusion? Hahaha.
That's just a rumor.
This industry is prone to such rumors.
Oh, by the way, we're not involved in any collusion.
Our schedule is totally empty, isn't it?
This is my son's athletic meet.
Hahaha...!
I'm embarrassed to say that I don't have any work, so I'm in a bit of trouble.
Ah.
Are the bidding results coming out today?
Welcome party for new employees
Tunnel Construction Bidding Results
The Shikoku Regional Development Bureau's tunnel construction bid was recently held.
The response was rather good, so I have high hopes for it.
Hehehe.
Oh, excuse me.
Yes, this is Koshobu Construction.
Yes, that's me.
Ah, this is about the bidding the other day.
Yes.
Yes...
I see...
I understand.
Koshobu's Mother Koshobu Akiko
How did it go?
Eh? Why?
I don't know.
What do I do about this month's payments?
Dad.
- Oh, Tsutomu, welcome back. - I'm home.
Koshobu Tsutomu
Oh, did something happen?
Why?
No, Mom's feeling down.
- Ah... - Could it be about money?
You don't have to worry about anything, you idiot.
- But... - Don't worry.
Even though we're a small company, as long as we work hard and don't give up, we'll manage.
No matter how weak we are, we have to fight.
- Yeah. - Alright.
Hahahaha
- It's all dirty. - Hahaha, then help me.
Okay.
- Tsutomu, did you get a girlfriend? - No, I didn't.
My uniform is getting wet.
- Eh? Is there a girl you like? - No, there isn't.
Oh, a drawing of a building. That's very well drawn.
But this part is a bit difficult.
Where? Let me see.
Ah, this area, widen the space a bit.
- Make sure it's strong enough. - Make it stronger...
Yokohagi...
Koshobu Construction
That's why you should investigate more closely!
I'm begging you!
- Just record this. - Yes.
What's wrong?
The president of the construction company says his company went bankrupt.
Another? There's been a lot of that lately.
He says they went bankrupt because of collusion.
Excuse me.
I heard you lost the recent bid?
What's with the blank schedule?
What are you going to do about it? Are you even going to make it?
Well, hehe...
Do you want a job?
Eh?
The Shikoku Regional Development Bureau
is planning to carry out more and more projects in the future.
I see.
So we're going to have a meeting next time to decide which bidder will win which construction project.
- Isn't that collusion.... - It's not collusion.
It's cooperation.
Recently, the number of government projects has been increasing and we're short on manpower.
I can't bring in a company I don't know anything about.
On that point, I feel safe with you.
You have technical and planning capabilities, and I can trust you.
What do you think? Won't you join us?
But I think it's unfair....
Unfair?
Oh, no...
Hahaha... It's fine.
But, you know,
with that said,
what are you going to do if you go bankrupt?
Your family will be left on the street.
I'll leave you a written pledge.
Just think about it.
Thank you for your understanding. Yes.
Who was that?
The bank. Asking for the loan repayment.
I see.
We won't be able to pay salaries if things continue like this.
Lacter Construction, what did they say?
Oh, nothing...
You weren't talking about work?
Yeah.
I see.
I'll see if I can't get them to wait a little longer.
Please do.
Protect Everyone. Safety of Friends. Smiles of Family
Alright, everyone, smile.
Okay, I'm about to take the picture.
Koshobu Construction Company Celebrating our 30th Anniversary
3, 2, 1
I'm happy that you decided to do this.
Now that you're on board, you can get the contract
that you didn't get earlier.
What? But I thought that was already decided...
It's all going to be okay. We decided on that, too.
I see.
Look.
Which bidders will win the upcoming bids,
have all been decided already.
This far in advance?
Don't you get it now? Competition is pointless.
Look.
That's Toudou who joined the Shikoku Regional Development Bureau from MLIT.
Shikoku Regional Development Bureau Toudou Kiyotada
He's in charge of all the big projects around here.
I'll introduce him to you. Come.
Director Toudou.
Oh, Kinoshita. How's business?
Yes, it's going well thanks to you.
I see. That's great news.
Ah...
I'm pleased to announce the new contractor for the construction project, Koshobu Construction.
Koshobu Construction.
Hey.
I'm Koshobu. I look forward to working with you.
I look forward to working with you.
Dear!
What's wrong?
I just got a call from the Contracts department.
That engineering work that we bid for the other day...
Our company is going to take care of it!
As expected of the president!
I see.
Congratulations, Dad.
What? Aren't you happy?
I'm happy. Of course I'm happy.
I'm going to go work for a bit.
He's just a little shy.
He's trying to look cool.
1 Month Later
Yokohagi Construction.
Ah.
What happened?
Look at this.
Koshobu Construction?
They finally won a bid. That's great news.
Koshobu Construction? If I recall, they won the bid last month too.
Let's see, if I'm not mistaken...
it was an engineering project issued by the Shikoku Regional Development Bureau.
No, as I recall, they didn't win that bid, right?
Yeah, that's right. Yamategumi's bid was canceled.
So that's how Koshobu Construction came in.
I didn't know that was possible.
- Are you okay? - I can do it.
Ma'am, you're really busy.
Thanks to you. We're already short on staff, haha.
- That's great. - Hahaha.
- Dear! Kinoshita's here.
Oh, excuse me.
What's going on?
Ah, it's about our next meeting.
Eh?
If there's anything I can do, please let me know.
Okay.
What's wrong?
Sawanami Construction went bankrupt.
What?
This is the third company this month. I wonder if there's anything more we can do.
But it's a good thing your company is doing well.
That's true, isn't it?
Kinoshita.
Huh?
Can't you give some of your work to another company?
Huh?
Everyone's having trouble finding work.
If things continue like this, some companies will go bankrupt again.
What are you talking about?
We're not running a charity.
That's right...
Don't worry about other people's business.
As long as you do as we say.
You'll get a job in the future too.
Right?
Announcement of Bid
Nishikimura Construction
Mihagi Construction
Koshobu Construction
Excuse me.
Oh, the JFTC...
I'm sorry for interrupting so suddenly.
Uhm... May I have a word?
Ah, sure.
Recently, the number of bankruptcies among construction companies has been increasing, hasn't it?
Yes.
On the other hand, certain construction companies
are steadily getting orders.
Perhaps, there is a reason for that?
I wonder.
Wow, but it's really amazing.
How did you get such a sudden increase in work?
Koshobu.
Is there something you want to tell me?
Not really...
You were thinking that honest workers
shouldn't have to suffer, right?
It's strange, isn't it?
What are you trying to say?
That's enough, can you leave now?
I'm desperate too.
I'm desperately trying to protect the company.
What's wrong with that?
Are you asking us
to just die on the streets?
Dad.
- Do you have a minute? - Yeah.
It's done.
Whoa, that's great.
You did a great job.
This part was the hard part.
No, it's well done.
You know, I want to be like you in the future.
I want to take over this company.
When this company is even bigger,
let's build the biggest building in Japan together.
Tsutomu.
What's wrong?
Nothing...
It's nothing.
Tsutomu.
This country...
is like a train with broken brakes.
The big boys get together secretly
and decide everything.
No matter how hard you try, it's no good.
That's the way it is.
That's how the system is set up to keep running.
In this country.
Then, someone has to stop it.
Yes,
that's right.
Yeah.
So, what did you want to talk about?
I was part of the collusion.
For that, I am very sorry.
Why did you decide to tell me?
I wonder why.
Alright.
For the sake of my son,
I want to stand tall and proud.
I guess that's why.
Hahaha...
Koshobu.
Thank you very much.
Excuse me. This is the JFTC.
Everyone, please stop your business for the time being.
You over there, please stop what you are doing.
Pursuant to Article 47, Paragraph 1, Item 4 of the Antimonopoly Act.
We will be conducting an on-site inspection.
What?
We appreciate your cooperation.
What's going on here?
TRAITOR
Dad.
Excuse me! Excuse me!
I'm sorry.
I'm afraid we are no longer doing business with you from today.
What do you mean?
You ratted out on us.
To the JFTC.
We can't go against Lacter either.
Please, I'll be in trouble.
Without this, we won't be able to start work tomorrow!
Get out of my way!
Please wait.
MONEY GRABBER COWARD DISGRACE
Andou-san! Andou-san!
DIE APOLOGIZE
No, that's a mistake.
There's no way we would do that.
GET OUT
SCUM OF SOCIETY
Dear, what will do now?
This is the JFTC, Shikoku Branch Office.
Honjo?
It's Koshobu.
Koshobu?
I'm in serious trouble.
I just wanted to do the right thing.
I shouldn't have joined in the collusion.
If things continue as they are, my family will not be able to survive.
I have to do something.
Koshobu? Where are you now?
There's something I didn't tell you.
There is someone who is coordinating the bid-rigging behind the scenes.
Eh?
It's Toudou.
Toudou?
Koshobu? Koshobu?
Koshobu!
I am very sorry for your loss.
Oh, you're still here.
Why didn't you tell me?
15 years ago,
my father got involved in collusion,
and took his own life.
In order to protect my family.
Toudou was behind the collusion.
That's why I joined the JFTC.
To arrest Toudou.
Do you have any leads?
Please lend me your help.
I don't know anything.
The Tokyo Bay Area Redevelopment Project?
Wow, that's a huge area.
It looks like a lot of companies will be involved in the project.
Which companies do you have in mind?
I think you are the only ones who can do it.
Senju Construction.
Kiyosumi Corporation.
Ougane Company.
And Lacter Construction.
You are the Big 4.
I'd like to entrust the entire construction project to you big four.
I need you all to lead
this historic project to success.
There is no need to bring in weak companies.
I'm counting on you.
How's it going? Any progress?
- Ah, it's impossible. - We can't do this on our own.
Inspector Momozono Chiyoko
Inspector Shirokuma Kaede
My shoulders are stiff too.
All right, shall I give you a little squeeze?
Team Cap Kazami Shinichi
Whoa.
That's sexual harassment.
It is!?
Don't worry. I won't sue you, please go ahead.
- I'll stop. - Cap!
I have a huge mortgage on the house.
Hey, look at this! Please take a look at this.
Tokyo Bay Area Redevelopment Project.
The project costs a total of 800 billion yen.
That's a sign of economic prosperity.
Inspector Rokkaku Kosuke
Isn't it amazing?
Why are you acting so big?
- I'm not acting big. - Hey Rokkaku, the usual please.
Sure.
What???
I wonder if many construction companies will participate in the bidding.
No, no, no.
The area is quite large, isn't it?
- Everyone's getting rich aren't they? - I wonder.
I hope we get some exciting projects like that too!
Why are you telling me?
Yes, this is Bureau 6.
We got a tip from a company called Kinosaki Building Materials.
A medium-sized general contractor
unilaterally reduced the price of materials delivered.
What do you think? Isn't this exciting?
What's so exciting?
Isn't this the usual bullying of subcontractors?
Ah, ah, ah, you are talking big.
Since when did you get to choose your work?
No, that's not what I meant.
Then, Shirokuma, can you take care of it?
Otsu Construction, right? I got it. Please leave it to me.
Good.
- Then I'll leave it to you. - Right.
Speaking of which, Koshobu still hasn't finished supporting Bureau 1 yet?
Bureau 1 seems to be looking into general contractors.
I think they said they suspect collusion involving Lacter Construction.
Lacter Construction?
What? What's wrong?
Wasn't that the case that got me into the JFTC a year ago?
The victim from that case was a board member of Lacter Construction named Koga.
Oh, what a coincidence.
Tomorrow, at the Tokyo Metropolitan Government's Bureau of Construction,
we will conduct on-site inspections of six companies,
including Lacter Construction, for alleged bid-rigging in river construction projects.
The person coordinating the collusion is Hiyama Yuya of Lacter Construction.
I want you to be extra focused in your inspections,
to make sure you find evidence of collusion.
Yes.
Then I'll explain the arrangements for tomorrow.
The on-site inspection...
I see.
I understand. Thank you very much.
Uhm...please wait just a little longer.
It's a problem for us too.
I'll make sure to pay the shortfall by the end of this month.
- Please. - You'd better do it as soon as possible.
Yes.
Thank you very much.
Is this about the payment to Kinosaki Kenzai Corporation?
- Yes. - I'm sorry.
We're trying to make the payment as soon as possible.
Aren't you able to work something out?
Well... you seem to be behind on other payments as well.
We're having trouble with our cash flow.
Otsu Construction Otsu Kousuke
Otsu Construction Otsu Tamaki
But that's okay.
I'm sure we'll be able to pay Kinosaki Kenzai soon.
There's an upcoming bid for the Oyada Bypass construction.
If we can get it...
According to my husband, the presentation went well. Right?
Yes.
I see. That's a relief then.
The Tokyo Bay Area Redevelopment Project, recently announced by the MLIT,
is estimated to cost 800 billion yen in total.
I wish we could be part of this project, however.
What do you mean by that?
Collusion is going to take place again anyway.
And behind the scenes, small companies like ours will go out of business.
Do you know how many construction companies go bankrupt every year?
No...
About a thousand companies.
A thousand companies?
It's because of collusion.
Here you go.
Thank you, Kinoshita.
Thank you for your continued support.
Everyone, please stop your work for the time being.
This is the JFTC.
Are you Hiyama-san?
What does the JFTC want?
Pursuant to Article 47, Paragraph 1, Item 4 of the Antimonopoly Act.
We will be conducting an on-site inspection.
Lacter Construction, Director of Civil Engineering Sales Division Hiyama Yuya
Oh, I see.
I understand. Please go ahead and look around.
- Let's begin. - Yes.
Server data, please.
Yes.
Wow! This is a splendid company, isn't it?
As expected of a leading Japanese company.
Annual sales amount is 1.8 trillion yen, isn't it?
How much of that is from collusion?
Huh?
Do you have any inside connections with the bureaucracy?
What are you talking about?
We will thoroughly investigate...
your desk.
- I'll give you a hand. - Oh, thanks.
This is Sugawara.
What?
No, but...
Yes, I understand.
- Koshobu. - Yes.
- We're pulling out. - What?
The on-site inspection is canceled.
- What do you mean? - It's an order from the top. We're pulling out.
You're pulling out?
If there's anything you're interested in, feel free to take it back.
- Was it Toudou? - Toudou?
What are you talking about?
Canceled!?
We were all ready to go, but...
DFT Konno Mamori
it suddenly came to a halt for some reason.
So, has something like that ever happened before?
Not at all.
That's a little unusual.
Public Prosecutor on Secondment Midorikawa Eiko
Is Koshobu here?
He's not back yet.
Did you come to see him because you're worried?
No, I'm not.
Well, I wonder why he hasn't come back yet.
If you'll excuse me.
Ah!! Midorikawa.
Please wait a minute, OK?
I have a few questions I'd like to ask you.
Have you heard anything?
The reason why Bureau 1's on-site inspection was stopped.
That's...
- Uhm... - Yeah?
- Rumor has it... - Yeah?
- I heard it was pressure from the bureaucracy. - Bureaucracy?
You mean inside information from the JFTC leaked out?
Ah, Koshobu.
I heard about the on-site inspection. They said information leaked out from somewhere.
Yeah.
By the way, have you seen Honjo?
No, I didn't.
I see.
Eh? Aren't you coming back to Bureau 6?
I have some investigation to do.
But Bureau 1's collusion case is over, isn't it?
I won't let it end so easily.
Koshobu?
Yesterday's on-site inspection was canceled.
I heard. It's been shelved for the time being?
It seems information leaked out from somewhere.
Do you know anything about it?
I don't know.
But...
It was you, wasn't it?
The source of the leak.
Why did you tell Toudou?
What are you talking about?
I saw you.
I never thought you were connected to Toudou.
I never thought you would betray me.
Never in my wildest dreams.
I didn't betray you.
Ah, basically...
You were on Toudou's side from the beginning, weren't you?
What was in it for you?
Money? A promotion? What was it!?
Koshobu!
Stay away from Toudou from now on.
You too, Honjo.
Don't get in my way any more.
You will never be able to catch Toudou.
And now for the final event.
Toudou Kiyomasa, Vice Minister of MLIT.
Please come to the platform.
Excuse me. I'm sorry.
Ladies and gentlemen, it looks like we are ready.
We will now proceed with the ribbon-cutting ceremony.
Yes!
Keep up the good work,
until it's time for his generation to take over!
I'm counting on you!
All right! Let's drink!
Take a good look, Tsutomu.
I'm going to make this company even bigger.
And one day we'll build the greatest building in Japan, OK?
- Yes. - Hahaha.
Distinguished guests, please cut the ribbon.
Mom, what's wrong?
I just got a call from the police.
Your father...
This area is very original.
It's interesting that you use it so boldly.
I never thought he'd kill himself.
He really did something unnecessary.
Will the collusion be affected?
Uhm... Toudou-san.
There's no need to worry.
It doesn't matter that only one person died.
Please come a little closer with Vice Minister Toudou in the center.
Damn you!
- Hey! - What did you say?
- He's from Koshobu Construction! - Pull him away!
Are you all right?
Your car has arrived.
When will the collusion be happening?
Aren't you from the JFTC...
It's been a long time. I'm Koshobu.
Toudou, please tell me,
the date and place of the collusion.
What are you talking about?
Toudou, you've known Lacter Construction for a long time, haven't you?
Since 15 years ago when you were in Shikoku.
That's enough.
Hey! Someone call security.
Ah... You're Koshobu?
I finally remember that name.
You're the son of the company president who committed suicide?
I'm really sorry about him.
We really had a lot of difficulties at the time.
Because of your father,
all construction was halted.
It was chaos.
That was a serious inconvenience.
So, did you find anything that connects me to the collusion?
May I ask you one question?
Is collusion really that bad?
In my opinion, competition is the real villain.
Your collusion
will be coming to an end.
Ah, that's him. Please handle it.
Excuse me, everyone who is not authorized needs to leave immediately.
I heard you're looking into Toudou.
Who are you?
I'm from the MLIT.
There's collusion going on, in a redevelopment project coming up soon.
8:00 tonight at the Nakadome Building in Shinjuku.
I'll tell you more later.
Excuse me.
Honjo.
Honjo...
Honjo!