A Japanese company which was found involved in bribery in other countries, including Vietnam, is banned from bidding on projects abroad that are funded by Japanese aids for three years.
Japan Transportation Consultants (JTC) Inc. was banned because it gave bribes in Japanese official development assistance (ODA) projects in Indonesia, Vietnam and Uzbekistan, Tuoi Tre newspaper reported, quoting a letter the Japan International Cooperation Agency (JICA) sent to Vietnamese Ministry of Planning and Investment.
The ban, effective between April 30, 2014 and April 29, 2017. is also enforced on JTC’s joint ventures. However, JTC is not banned from being sub-contractor in Japanese ODA projects.
Japan's Yomiuri newspaper in March reported that JTC had paid 80 million yen (US$782,000) to get a contract worth 4.2 billion yen ($41 million) in Vietnam.
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According to the report, JTC President Tamio Kakinuma alleged that his company paid cash in return for a ODA-funded rail project in Vienam.
Vietnamese police launched an investigation in April and has so far detained six officials of the Ministry of Transport's Railway Department and of Vietnam Railways, the state-owned operator of the railway system in Vietnam.
They are alleged of "negligence of responsibility, causing serious consequences" and abusing power in execution of their duty.