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Thursday, November 5
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Fails & scandalsJapan

Kawasaki official arrested on suspicion of leaking secret tender prices to painters' group

Kanagawa police on Nov. 4 arrested Takao Sekiguchi, 59, who holds a director-level post in Kawasaki's Urban Development Bureau, on suspicion of passing unpublished prices for two 2024 city repair tenders to a painting contractors' association.

Police allege Sekiguchi met an official of the Kawasaki Painting Industry Association inside City Hall and gave him the confidential contract prices for two open tenders, one for repainting and one for waterproofing at city facilities, the Tokyo Reporter reported, citing the Asahi Shimbun. The association official is said to have worked out the minimum allowed bids and emailed them to the president of a member company, who passed them to two firms. Both firms won. The awards were made by electronic lottery, yet police believe the president had picked the winners in advance.

Between April 2023 and March 2025 Sekiguchi headed the bureau's facilities development division and alone signed off on tender prices for jobs over 10 million yen. The association official, 78, is a former head of the same bureau who retired in 2009. Police referred him to prosecutors without arrest on Nov. 5 and sent Sekiguchi's case to prosecutors the same day, the Kanagawa Shimbun reported. Investigators suspect the same pattern was used on other city tenders. Police have not said whether either man admits the allegations.

In a statement, the city confirmed the arrest on suspicion of bid rigging and bid obstruction. Mayor Norihiko Fukuda said the city takes the case very seriously, will cooperate fully with police and will act strictly once the facts are established.

Why it matters: A leaked floor price can turn a bid lottery into a fix. If a trade group or a former official offers you pricing the owner has not published, turn it down in writing and keep a record of the contact.

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