Japanese prosecutors indict six companies including Dentsu for 'Tokyo Olympic project bid-rigging'

Japanese prosecutors have indicted six companies, including the major advertising firm Dentsu, and officials from the Tokyo Olympic and Paralympic organizing committee on suspicion of collusion during the bidding process for the Tokyo Olympics and Paralympics projects.

According to a report by Kyodo News on the 28th, the Tokyo District Public Prosecutors Office's special investigation division has brought charges against Yasuo Mori, former deputy director of the organizing committee, and six executives from six companies including Dentsu and Hakuhodo for violations of the Antimonopoly Act.

July 23, 2021, Tokyo Olympic opening ceremony held at the National Stadium in Shinjuku, Tokyo, Japan [Image source=Yonhap News]

The organizing committee is suspected of coordinating the winning companies together with Dentsu during the bidding process for the company responsible for "planning" the test events, which served as preliminary events for the Tokyo Olympics. According to prosecutors, the total amount contracted by the indicted companies reached 43.7 billion yen (approximately 420 billion KRW). This accounts for 28% of the operating expenses of 157.6 billion yen (approximately 1.5 trillion KRW) directly spent by the organizing committee.

Kyodo News reported that the Tokyo District Public Prosecutors Office appears to have concluded its investigation into the collusion allegations, effectively closing the Tokyo Olympics and Paralympics investigation that began in July last year.

Meanwhile, Sapporo City in Hokkaido is pursuing a bid to host the 2030 Winter Olympics.