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Implementation of Measures against Companies Engaged in Corrupt or Fraudulent Practices in Japan's Official Development Assistance Projects

July 28, 2006

  1. In order for the Foreign Ministry of Japan to implement Official Development Assistance (ODA) projects promptly and efficiently, if it determines that such companies as consulting firms, constructing firms, and procuring firms, have engaged in corrupt or fraudulent practices in Japan's ODA projects, the Foreign Ministry will take necessary measures to disqualify those companies from competing for the contract of Japan's ODA projects for a certain period.
  2. Because the Foreign Ministry determines that the companies listed below have engaged in corrupt or fraudulent practices in Japan's ODA projects, the Foreign Ministry of Japan, following "Japan's ODA code against companies that are engaged in fraudulent practices" recognizes these companies as ineligible to be awarded a contract funded by Japan's Grant for the periods as mentioned below.
    • ICONS International Cooperation, Inc.
      From July 27, 2006 to August 26, 2006 (1 month)
    • NBK Corporation (Nanyo Boeki Kaisha, Ltd)
      From July 27, 2006 to August 26, 2006 (1 month)
    • Nippon Koei, Co., Ltd.
      From July 27, 2006 to August 26, 2006 (1 month)
    • Fujita Corporation
      From July 27, 2006 to August 26, 2006 (1 month)
    • Central Consultant Inc. (CCI)
      From July 27, 2006 to September 26, 2006 (2 months)
  3. The Foreign Ministry of Japan has ordered the Japan International Cooperation Agency (JICA), and Japan Bank for International Cooperation (JBIC) to take the equivalent measures with respect to technical-cooperation projects and loan-aid projects.

[Attachment]

Implementation of Measures against Companies Engaged in Corrupt or Fraudulent Practices in Japan's Official Development Assistance (ODA) Projects

1. ICONS International Corporation Inc. and NBK Corporation (Nanyo Boeki Kaisha, Ltd)

With respect to grant aid to Kiribati for the Project for Kritimati Island Coastal Fisheries Development in FY2005, although the delivery of four fishing boats that were to be purchased locally had not been completed at the project site, ICONS International Cooperation received a completion certificate on March 6, 2006 and NBK Corporation received a receipt for machine parts from the project executing agencies of the recipient country. NBK Corporation made a claim to the bank in February 28, 2006 for the business expenses including related expenditure, and received the money.

2. Nippon Koei Co., Ltd. and Fujita Corporation

With respect to grant aid to Papua New Guinea for the Project for Rehabilitation of Bridges on the Highlands Highway in FY2005, although construction that amounted to 1% of the whole construction expense was incomplete, the two companies received a completion certificate from the project executing agencies of the recipient country in March 27, 2006 to the effect assuming that all the work had been completed. They claimed the business expenses from the bank in Mach 28, 2006 and received the full amount of contract money including the expenditure for the work that had not been finished.

3. Central Consultant Inc. (CCI)

CCI was the consultant company in charge of the Project for the Rehabilitation of the Japan-Bolivia Bridge of Friendship (Proyecto de Rehabilitacion del Puente de la Amistad Boliviano-Japones) for FY2005-2006, but the company did not get prior consent from JICA for a change in design for the thickness of the adhesive material to be filled between the floor slab of the bridge and the steel sheeting for reinforcing the bottom part of the bridge. The company also failed to go through procedures to modify the business contract to reflect the lower cost of the construction caused by the above change, resulting in overpayment.

Consent for a change of contractors has been given by consultants and organizations of the ODA recipient countries, and the obligations of the contract are being fulfilled.

[Related Projects and their Outlines]

FY2004 "Project for Kritimati Island Coastal Fisheries Development" of Kiribati
(E/N: up to 739 million yen)

By improving seawalls and slipways, constructing storage facilities and procuring fishing vessels, this project is aimed at securing safe fish landing, a good processing environment and stable refrigeration on the island to provide frozen fish constantly to the capital Tarawa.

FY2004 "Project for Rehabilitation of Bridges on the Highlands Highway" of Papua New Guinea
(E/N: up to 411 million yen)

Based on the "The Project for Rehabilitation of Bridges on the Highlands Highway", this project is aimed at securing stable traffic on the Highlands Highway by repairing the bridges.

FY2004-2005 "Project for the Rehabilitation of the Japan-Bolivia Bridge of Friendship" (Proyecto de Rehabilitacion del Puente de la Amistad Boliviano-Japones)
(E/N: up to 351 million yen)

This project deals with the deterioration of the bridge (about 280m in length; about 6.8m in width), including damage to the floor slab and partial destruction on the bridge itself, to secure all-year-round safe traffic of increasing numbers of heavy-loaded vehicles, and achieve stable distribution of goods. After the improvements, it is expected that the bridge will become a symbol of friendship between the two countries as the "Japan-Bolivia Bridge of Friendship".

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Related Information (Japan's ODA)

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