Japan FTC Raids Defense Min. Office Furniture Suppliers

Tokyo, June 18 (Jiji Press)--Japan's Fair Trade Commission has
raided six office furniture makers on suspicion of rigging bids in supplying
products ordered by the Defense Ministry, Jiji Press learned Thursday.

The six companies are Itoki Corp. <7972>, Uchida Yoko Co. <8057>,
Lion Office Products Corp., Plus Corp. and Okamura Corp. <7994>, and Kokuyo
Furniture Co., a unit of Kokuyo Co. <7984>.
The FTC is expected to conduct further investigations to see
whether the ministry has been involved in the bid-rigging case.
Informed sources said the six companies are suspected of illegally
predetermined the winners of tenders for office furniture, including desks
and lockers, launched by the Air Self-Defense Force from around 2005.
The annual value of the ASDF's furniture orders ranged from 2
billion yen to 3 billion yen. Almost all of the orders were won by the six
companies.
The FTC in June 2007 fined 51 companies 3 billion yen in total for
bid-rigging over construction projects ordered by the now-defunct Defense
Facilities Administration Agency. The case involved defense officials.
Regarding the Defense Ministry, which was upgraded from the Defense
Agency in January 2007, the FTC has also issued cease-and-desist orders over
the organization's procurement of tires, batteries and jet fuels.