FOR IMMEDIATE RELEASE CIV FRIDAY, SEPTEMBER 16, 1994 202 514-2007 U.S. SUES 53 JAPANESE CONSTRUCTION COMPANIES IN JAPAN FOR CONTRACT BID-RIGGING SCHEME WASHINGTON, D.C. -- The Department of Justice filed suit against 53 Japanese construction companies in Tokyo District Court Friday, charging that the companies rigged bids on contracts at the United States' Atsugi Naval Air Facility from early 1984 to early 1990. Assistant Attorney General Frank W. Hunger, head of the Civil Division, said the complaint seeking $5.5 million in damages involves 77 contracts alleging specific evidence of collusion. The companies named in the suit include some of the largest public firms in Japan, including Nishimatsu Construction, NEC Information Technology, a subsidiary of NEC Corp., Toyo Construction and Maeda Construction. Hunger said a number of other companies that participated in the massive bid-rigging scheme reached out-of-court settlements with the United States. "The evidence of bid-rigging in this case is strong, and we are confident the Japanese court will find in our favor," said Hunger. "Today's court filing is an important step toward affirming our commitment to free and fair trade in all nations. By filing suit against these companies, we make clear that we will not turn a blind eye to those who engage in anti-competitive behavior in contracting with the United States government." The complaint alleged that the companies were members of an organization called the "Atsugi Kensetsu Bukai," which was formed in 1982 for the purpose of bidding on construction contracts at the Atsugi base. The companies, as members of the organization, conspired to rig bid prices on the projects. The companies named as defendants in the complaint were members of the Construction, Electrical, Installation and Civil Engineering divisions of the Atsugi Kensetsu Bukai. An investigation conducted by the Naval Criminal Investigative Service and the Department of Justice revealed that the bid- rigging was generally conducted at the divisional level. Despite the dissolution of the Atsugi Kensetsu Bukai in 1988, the Construction Division continued to rig bids into 1990, the complaint said. In March 1994, the Department of Justice notified the defendant companies that it was contemplating filing a suit against them in Japan. The companies named in today's suit include: 1. ARASAWA KENSETSU 2. ASANO KOJI 3. ATARASHI KOMUSHO 4. CHUO KENSETSU 5. DAIHO KENSETSU 6. DAIKATSU 7. DAIWA KOGEI KENSETSU 8. FUJITA DENSETSU 9. FUSO DENKI 10. GOYO KENSETSU 11. HAGA KENSETSU KOGYO 12. HONDA KOGYO 13. HOSAKA KENSETSU 14. IKEDA KENSETSU 15. ISHII DENKI 16. KAJIMA DORO 17. KAWABATA KENSETSU 18. KEIHIN DENSETSU 19. KOKA PLANT 20. MABUCHI KENSETSU 21. MAEDA DORO 22. MAEDA KENSETSU KOGYO 23. MATSUMOTO REKISEI KOGYO 24. MEIDENSHA 25. MITAKA KOGYOSHO 26. MIYUKI-GUMI 27. MUNEOKA KENSETSU 28. NEC OVERSEAS MARKETING 29. NIHON DORO 30. NIHON HODO 31. NIKKI DORO 32. NIPPI KOSAN 33. NISHIMATSU KENSETSU 34. NISSAN KENSETSU 35. OONO JUDEN DOBOKU 36. SANWA DAIEI DENKI KOGYO 37. SEIKI TOKYO KOGYO 38. SHIN-NIHON DOBOKU (now MARUBENI KENSETSU) 39. TAIKEN KOGYO 40. TAISEI DORO (now TAISEI ROTEC) 41. TAKAMATSU-GUMI 42. TAKENAKA DOBOKU 43. TAKENORI 44. TOA DORO KOGYO 45. TOHO DENSETSU KOGYO 46. TOKYU KENSETSU 47. TOYO DORO 48. TOYO KENSETSU 49. TOYOKO KENSETSU 50. TSUKISHIMA KIKAI 51. TSUKUSHI DENGYOSHO 52. UEKI-GUMI 53. YAMAGISHI KENSETSU ##### 94-530