A Japanese consultancy firm said Monday it was investigating report its president had admitted bribing foreign officials to win contracts linked to multi-million dollar development projects.
Tamio Kakinuma, head of Japan Transportation Consultants (JTC), admitted the 130 million yen fraud last week to Tokyo prosecutors, Japan's top-selling Yomiuri newspaper said, and had signed a confession, it added.
JTC said it had set up an internal committee to look into the claims.
"We apologise for causing shareholders, business partners and others concerned a lot of trouble and worry," a company spokesman told AFP. "But we can't comment further until the independent committee announces results of their investigation."
The 65-year-old Kakinuma told prosecutors that his firm paid kickbacks to civil servants in Vietnam, Indonesia and Uzbekistan to land work tied to Japan's Official Development Assistance (ODA) projects, the report said. Prosecutors were preparing to launch a criminal probe, it added.
Among the illicit payments were 80 million yen paid to officials at Vietnam Railways to secure a project worth 4.2 billion yen, and 30 million yen in bribes linked to three projects in Indonesia, the paper said.
Uzbek officials were paid about 20 million yen, it added.
On Monday, the Tokyo Prosecutors' Office declined to comment.
The Yomiuri said last week that about 40 illegal payments were made to officials between early 2008 and last month.
© (c) 2014 AFP
13 Comments
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sensei258
Say it isn't so! There goes my faith in humanity.
Gobshite
Business as usual isn't it? Secret payments, price fixing cartels, nepotism ......... should be in the business section.
ebisen
Well, if they really got the contracts, I'd say they really felt this is money well invested. Only if they wouldn't get caught.
Novenachama
These three countries from Southeast and Central Asia are distinctive in many ways, and this is no different with respect to the much studied subject of corruption. All these countries have experienced economic liberalization with the reduction of trade and investment barriers, and less government intervention in the economy which is suppose to reduce corruption because business no longer need to pay bribes to be allowed to conduct them, yet despite this, there has been no discernible fall in corruption. Some argue that individuals and organizations doing business in countries where corruption is prevalent should not be expected to adhere to strict standards of ethical practice. However the basis for such argument is faulty and ethics unlike etiquette, has a universal basis. It is fundamentally the same all over the world. Even in practical sense, there are long range advantages to be gained by ethical behavior in these situations.
Frungy
Novenachama - Ethics has to do with complaince with local laws and standards of behaviour, and is in no way universal.
Novenachama
Frungy - I am talking about Universal Ethics which is a set of principles which apply to all human, whether secular or religious, independent from any particular faith. They are objective and eternal.
JeffLee
The Japanese are aggressively targeting Vietnam and other countries, much of it with public funds like ODA.
They resort to bribes because the Japanese contractors don't like sharing work or working with foreign contractors and they want the jobs all to themselves. So they try to subvert a bidding process with bribes. This isn't the first scandal of its type.
Frungy
They're also non-existant. Give me a list of these principles and I'll cite at least one example of a civilisation where they didn't apply.
Novenachama
Frungy - I will share a framework for universal principles of ethics. First principles of personal ethics include concern for the well-being of others. Respect for the autonomy of others. Trustworthiness and honesty. Willing compliance with the law; with the exception of civil disobedience. Basic justice; being fair. Refusing to take unfair advantage. Benevolence; doing good. Preventing harm. Second principles of professional ethics include impartiality; objectivity. Openess; full disclosure. Confidentiality. Due diligence/duty of care. Fidelity to professional responsibilities. Avoiding potential or apparent conflict of interest. Third principles of global ethics include global justice; as reflected in international laws. Society before self-social responsibility. Environmental stewardship. Interdependence and responsibility for the whole. Reverence for place. I must state that I have no qualification as an ethicist and realize that principles can only provide guidance and be used to trigger our conscience or guide our decisions. I believe that principles are basically landmarks or generic indicators to be used as compelling guides for an active conscience.
Frungy
Novenchama, I think you have confused ethics and morality.
One look at the world today and you can see that this simply isn't truly universal. If it was then major companies wouldn't pay peanuts and use child labour in sweatshops in the 3rd world just to save a few bucks on production costs.
You mean like in North Korea where there are concentration camps, or in the U.S. where people are habeus corpus has been suspended indefinitely?
Oh dear. Every politicians everywhere proves you wrong.
Willing compliance with the law? Show me the most honest person you know and then follow them for a week and they'll break at least a half dozen laws.
We don't have a justice system, we have a legal system, and there's nothing fair or just about it.
Every businessman everywhere would laugh in your face if you proposed they follow this principle.
How much money do you have in your bank account right now? Take it out and send it to people starving to death in Africa. You might do it, just to prove me "wrong", but there are billions of other people who haven't.
You mean like fast food companies that knowingly sell products that slowly kill their customers?
It is impossible to be totally impartial and objective.
... I could go on, but what you're listing here is a MORAL wishlist. Even then it isn't universal.
Ethics is about complying with the law, nothing more, nothing less.
NathalieB
Tip of the ice berg I suspect.
Novenachama
Frungy - Ethics is about complying with the law is a fallacious statement. It is based on faulty reasoning.
Since laws impose sanctions, they use fear as a motivator. Therefore laws and regulations, although necessary, will be resented for the compliance they require since they restrict liberty and appeal to fear. Even though the goal of compliance is to help improve ethical behavior, simply concerning ourselves with being in compliance and satisfying the letter of the law will not improve ethical behavior by itself because being in compliance with the law is not equivalent of being ethical. To equate following the law with being ethical is a mistaken view. In short, neither individuals nor companies meet their full ethical responsibilities when they simply aim to stay in compliance. The fact is to be ethical we need to go beyond compliance because if companies rely solely on appeals to compliance to promote ethical behavior, they may end up not determining the very ethical behavior they seek to encourage. Since compliance is targeted at meeting the basic legal requirements, it emphasizes the letter of the law, rather than addressing the reasons for the law, the spirit of the law. Simply meeting the demands of compliance does not always make it ethically.
Frungy
Well, the law is the only thing we can enforce. Moral principles are all very nice, but you can't MAKE people adhere to them.