Japan Investigates Wrongdoing on $79 Billion Maglev Project
- Obayashi, Kajima suspected of wrongdoing on maglev contracts
- Shares in construction companies tumble after media reports
A JR Central L0 series maglev train ahead of a trial run at the Yamanashi Maglev Test Track site in Tsuru, Yamanashi Prefecture, Japan in 2015.
Photographer: Kiyoshi Ota/Bloomberg
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Japanese prosecutors are investigating two of the country’s biggest construction companies, Obayashi Corp. and Kajima Corp., for suspected wrongdoing linked to a public-backed $79 billion magnetic-levitation rail network.
After local media reported authorities were looking into bid-rigging related to construction of Central Japan Railway Co.’s maglev project, Obayashi Corp. said in a statement that prosecutors had raided its office Friday on suspicion it used fraudulent information to obstruct business.