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Ad agency Hakuhodo, others raided as Olympic bid-rigging investigation widens

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It might be easier to report on a company not involved in the bid-rigging related to the Olympic Gmes, if they can find one!

-1 ( +17 / -18 )

How about banning Japan forever from hosting the games?

problem fixed!

-8 ( +17 / -25 )

On Friday, the prosecutors and the Japan Fair Trade Commission raided Japan's top advertising agency Dentsu Inc, and premises linked to a former senior official of the Tokyo Olympic organizing committee and event production company Cerespo Co, after the country's third largest advertising agency, ADK Holdings Inc, reported to the watchdog that it had participated in bid rigging.

Dentsu, Cerespo, ADK and Hakuhodo...It is safe to say if you are not an LDP crony you cannot exist in this industry.

Japan could have an economic revitalization just by cracking down on its crony companies. It won't happen though.

0 ( +14 / -14 )

This is great. Keep this up and eventually all these large companies would be no longer interested in taking part in the 2030 winter olympic events

-1 ( +12 / -13 )

It might be easier to report on a company not involved in the bid-rigging related to the Olympic Gmes, if they can find one!

Needle in a haystack.

How about banning Japan forever from hosting the games?

problem fixed!

Excellent idea!

Dentsu, Cerespo, ADK and Hakuhodo...It is safe to say if you are not an LDP crony you cannot exist in this industry.

That's true

Japan could have an economic revitalization just by cracking down on its crony companies. It won't happen though.

Agree.

This is great. Keep this up and eventually all these large companies would be no longer interested in taking part in the 2030 winter olympic events

Sigh... if only...

-7 ( +12 / -19 )

Here we go again. Lol.

1 ( +7 / -6 )

This would have been business as usual had Japan not lost so much money from the Olympics. The only way the JP government is going to get anything back.

6 ( +10 / -4 )

I want to get it out in the open right now, I was NOT involved in any bid rigging for the Olympics.

9 ( +9 / -0 )

I don't see what all the fuss is about. Bid rigging is so commonplace in Japanese business; just like falsifying data.

-1 ( +13 / -14 )

Yes, I realized this within a week of moving to Japan and finding that every major brand of beer in every single store was the exact same prices. Things are microscopically better now. In my industry, the major players all have HQ within walking distance of each other and meet for various events regularly. I cannot see how bid-rigging would not happen.

4 ( +7 / -3 )

means Japan's top three advertising agencies are now subject to investigation

Now that’s the real Olympics finally starting. And there’s even a medal to gain for every participant. Go for Gold, guys. lol

-2 ( +3 / -5 )

In this kind of case, the people involved in the crime say that it's not bid rigging. They say: It's screening out the companies that do not meet the quality and/or standards to compete with the other companies. I do not agree with them, however they strongly believe this. It's not fair business practice. Wake up!

1 ( +2 / -1 )

Stand by for imminent inaction!

1 ( +3 / -2 )

How about banning Japan forever from hosting the games?

That's not happening. Bach had too good of a time in his $100k per night hotel suite at the New Okura.

3 ( +6 / -3 )

Well don, this is the only way to have a real democracy when corruption it stamped out, and offenders are locked up, if not then you will have a anarchy.

1 ( +1 / -0 )

When do Japanese politicians and large company heads go to jail in Japan?

They don’t because the system is corrupt!

2 ( +3 / -1 )

this story has been in the news for 6 months I am sure nobody destroyed or hid any documents in the meantime. hope they find everything....

1 ( +1 / -0 )

Bid-rigging that's sounds very familiar especially in the US The closest company that I can think of do something like that in the open is INSURANCE companies they invented Bid rigging! Try getting home owners insurance or auto insurance and see what happens you can't find a cheaper price because they are all basically the same. In the US I know for sure they share the same data base therefore you are hosed you can't do nothing but let them rob you not blindly but in your face.

0 ( +1 / -1 )

There’s no way corporate corruption exists in the perfect country of Japan.

0 ( +3 / -3 )

The money from the bribes will be probably used to buy real estate so the law enforcers will want some public recongnition but will acommodate since its kind of good for the economy, construction workers, agents, etc.

1 ( +1 / -0 )

Where exactly does Japan stand on the Bribery Ranking tables ?

0 ( +3 / -3 )

It was a “raid” but reporters know it first.

Japanese prosecutors are the epitome of corruption.

3 ( +5 / -2 )

Make sure to check the shredder box and hit ctrl H on computers

3 ( +3 / -0 )

But isn't the Olympic bid process rigged already. Can't wait for the day when no city can / want to afford the cost of such a waste. What is the IOC's contribution to climate change?

1 ( +2 / -1 )

Bid-rigging that's sounds very familiar especially in the US The closest company that I can think of do something like that in the open is INSURANCE companies they invented Bid rigging! Try getting home owners insurance or auto insurance and see what happens you can't find a cheaper price because they are all basically the same. In the US I know for sure they share the same data base therefore you are hosed you can't do nothing but let them rob you not blindly but in your face.

Or, that one low price could mean that competition has bid the price down to the lowest amount a firm will accept and remain profitable. In a situation of full competition with large numbers of sellers (based on a century of econometric research that means a minimum of six firms with roughly equal market share) and customers one expects there to be a single market price and all participants in the market are said to be "price takers".   In general for auto insurance that is the case because in most places you cannot register your vehicle without proof of insurance. That ensures a large market that drives prices down.  Prices will vary by risk but different companies will price the same risk at similar prices. If they price too high they lose customers. Read Adam Smith or David Ricardo and learn how this works. You also have to consider that some places regulate the rates insurance companies can charge. In Australia your liability insurance is included in your vehicle registration, which I thought makes too much sense. If you want additional collision and comprehensive insurance you buy on the open market.

Bid rigging is something entirely different btw. It is firms agreeing who will bid on projects so each company gets a piece of the action. That is some

-1 ( +0 / -1 )

Where exactly does Japan stand on the Bribery Ranking tables ?

This may surprise you:

https://tradingeconomics.com/japan/corruption-rank

https://take-profit.org/en/statistics/corruption-index/japan/

https://www.transparency.org/en/countries/japan

-2 ( +0 / -2 )

Japanese government and business culture has a habit of making excuses and blaming others for everything. The other strategy as people can see here is diffusing the blame. This is used when the fault is undeniable. Therefore, they spread the blame over a larger number, so no one person (entity) has to take all the blame. It is the riot mentality.

This seems like an attempt by the j-gov to spread the responsibility among other businesses, so Dentsu will not get all the blame and ruin its reputations any further. Like the Unification Church, Dentsu also has a lot of close corrupt relationships with J-government. Dentsu scandals is putting another spotlight on the J-government corruption.

Dentsu is leveraging their secrets about the J-gov which is already embarrassed by lots of Shinzo Abe's LDP scandals to take off some of the pressure!

1 ( +2 / -1 )

This is NOT news, bid-rigging and corruption is the Japanese way.

3 ( +4 / -1 )

Japanese government and business culture has a habit of making excuses and blaming others for everything. 

That is hardly confined to Japan. It is human nature. Japan is decent and honest compared to much of the world.

-3 ( +0 / -3 )

This is NOT news, bid-rigging and corruption is the Japanese way.

No. I worked for Konoike Pacific for a while as a temp and found the Japanese managers to be honest and considerate of their employees. It was one of the better places I ever worked.

-3 ( +0 / -3 )

Desert TortoiseToday  10:11 am JST

That is hardly confined to Japan. It is human nature. Japan is decent and honest compared to much of the world.

Agree.

-2 ( +0 / -2 )

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