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Mitsubishi Heavy ordered to pay Y2 bil for rigging bids

NAGOYA —

Leading machinery and plant maker Mitsubishi Heavy Industries Ltd was ordered Friday to pay about 2 billion yen in damages to a municipal waste disposal union for unfairly winning an order to construct an incinerator after rigging bids among contractors. The Nagoya District Court issued the order, acting on a 2.46 billion yen damages suit filed by the Amachiku Environmental Office Association, a disposal union formed by three cities, four towns and a village in Aichi Prefecture.
   
Presiding Judge Yasuhiro Hasegawa said in the decision that Mitsubishi Heavy caused the union damage amounting to the difference in cost between fair competition and the rigged bid. The judge said the damages should be the equivalent of 8% of the contract value, citing data from the country’s anti-trust watchdog, the Japan Fair Trade Commission. Court findings showed that the union conducted a competitive bidding process for its incinerator project in Yatomi, west of Nagoya, in June 1998.

© 2009 Kyodo News. All rights reserved. No reproduction or republication without written permission.

1 Comments

  • electric2004 at 10:16 AM JST - 8th August

    Who would have thought that MHI could ever do such a terrible thing?

    This is totally regrettable and can never be forgiven.

    Oh, wait, it is a Japanese company?

    Let's forget and move on with the business folks.

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