TOKYO: Japanese ministries said on Wednesday (Feb 15) that advertising giant Dentsu Inc and two other companies linked to a Tokyo 2020 Olympics corruption scandal will be unable to take part in bids for contracts for nine months.
Prosecutors last week arrested an ex-Tokyo Olympic official and executives at the three advertising and event-planning firms in connection with the suspected rigging of bidding for Games-related events.
The arrests came after months of investigations into suspected corruption in the planning and sponsorship of the Games, held in 2021 after being postponed for a year because of the coronavirus pandemic.
The industry ministry, foreign ministry and education ministry all said in filings on their websites that the three companies would be barred from participation in bidding for projects for nine months from Wednesday.
Media had reported on Tuesday that the companies would not be allowed to participate in projects from the Cabinet office and various ministries for nine months.
Dentsu, whose parent company is Dentsu Group, said in an email that it took the situation seriously.
“We will respond appropriately in accordance with the decision,” it said.
The other two companies banned form bidding are Cerespo and Fuji Creative Corporation, a subsidiary of Fuji Media Holdings. Officials at both said they were not able to make any immediate comment.
In August, Haruyuki Takahashi, a former member of the Tokyo 2020 Olympics board and before that a Dentsu executive, was arrested on suspicion of receiving bribes from Olympic sponsors.
Media previously reported that prosecutors late last year raided the offices of the country’s biggest advertising agencies including Dentsu, Hakuhodo Inc and ADK Holdings Inc on suspicion of colluding to rig bids and orders for Olympics-related events worth an estimated 40 billion yen (US$305 million)
Executives from ADK, clothing retailer Aoki Holdings and publishing firm Kadokawa have also been arrested in connection with the bribery scandal.