Mon, September 23, 2024
Prosecutors demand €1.9 million fine for Dentsu Group over Tokyo Olympics did-rigging
Last Wednesday, public prosecutors sought a ¥300 million (€1.9 million) fine against advertising agency Dentsu Group for violating Japan's antimonopoly law. The charges stem from Dentsu's alleged involvement in rigging bids for contracts related to the Tokyo 2020 Olympic and Paralympic Games, held in 2021.
During a hearing at the Tokyo District Court, they also sought a two-year prison sentence for Koji Henmi, 57, the former deputy head of Dentsu's sports department. Henmi is accused of coordinating bids for contracts tied to the Games' test events. Allegedly, Henmi played a central role in the scheme, collaborating with a previously convicted senior Tokyo Organising Committee official. Prosecutors argue that Henmi manipulated the process, orchestrating which companies would secure contracts and facilitating collusion with other firms.
They highlighted the gravity of the case, pointing out that Dentsu had earned approximately €4.4 million from its involvement in Tokyo 2020-related activities, and argued that Henmi was largely responsible for the fraudulent bidding coordination.
The defense requested a suspended sentence for Henmi, asserting that while there was coordination between companies for test event contracts, no collusion occurred for the main event contracts, which were awarded through discretionary processes. As a result, they claimed Dentsu should not be held liable for any wrongdoing concerning these main events.
Five other companies, including the advertising agency Hakuhodo, have also been implicated in the bid-rigging scandal. Hakuhodo was fined €1.26 million earlier this year, and a former company president received an 18-month prison sentence, suspended for three years. Both Hakuhodo and the ex-president have since appealed their sentences.
