Japan's Dentsu, others indicted over alleged Olympic contract bid rigging

TOKYO: Japanese prosecutors on Tuesday (Feb 28) indicted six companies including advertising giant Dentsu Group and seven individuals over the suspected rigging of bids worth US$320 million for the Tokyo 2020 Olympics and Paralympics.

The indictments follow months of investigations into alleged corruption in the planning and sponsorship of the Tokyo Games, held in 2021 after a COVID-19 postponement.

In response to the indictment, Dentsu said that it had set up a committee of outside experts, chaired by a former Supreme Court judge, to review and investigate the case. Dentsu Japan's CEO and other executives would also return a portion of their compensation for six months, it said.

"The company takes this situation seriously and offers its sincere apologies to its business partners, shareholders and all other relevant parties for any inconvenience or concern this may cause," Dentsu said in a statement.

Hakuhodo DY Holdings, Tokyu Agency, Fuji Creative Corporation, Cerespo and Same Two were also indicted, along with officials who were in charge of the bidding at the time, prosecutors said.

Hakuhodo, Tokyo Agency and Fuji Creative parent Fuji Media Holdings also issued statements of apology. Cerespo had no immediate comment, while Same Two declined to comment.

The Tokyo Games have also been tainted by a separate scandal in which Haruyuki Takahashi, a former member of the Tokyo 2020 Olympics board and an ex-Dentsu executive, was arrested last year on suspicion of receiving bribes from Olympic sponsors.

Tuesday's indictment came after Japan's Fair Trade Commission filed a criminal complaint against the companies and individuals, citing a "huge" societal impact and the size of the contracts.

It said that the collusion took place in