Japan maglev project marred by bid-rigging arrests

Contractors feared hard-bargaining JR Tokai would make work unprofitable

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Current and former officials from Kajima and Taisei are accused of rigging bidding for railway projects.

Nikkei staff writers

TOKYO -- Japan's big four contractors are accused of bid-rigging for a planned magnetic levitation train line in an apparent effort to protect earnings amid pressure to cut costs.

Tokyo prosecutors Friday arrested two former and current senior officials from general contractors Kajima and Taisei suspected of colluding with peers Obayashi and Shimizu when bidding on contracts in 2014 and 2015 from Central Japan Railway, commonly known as JR Tokai.

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