Prosecutors arrested a former operations executive at the Tokyo Olympics organizing committee Wednesday on suspicion of playing a lead role in bid rigging for contracts related to games test events, a source close to the matter said.
Tokyo prosecutors also plan to build a case against Japanese ad giant Dentsu Inc. on suspicion it violated the antimonopoly law, the source said, in the latest of a series of widening scandals involving the now-dissolved organizing committee and related companies.
The former executive, Yasuo Mori, along with some people seconded from Dentsu and senior Dentsu officials, used a list of companies assigned to each test event for the Tokyo Olympic and Paralympic Games to arrange successful bidders, the source said.
They exchanged emails with companies that prosecutors allege influenced the bidding process, the source said.
The Tokyo prosecutors' special investigation squad has been coordinating with Japan's fair trade watchdog on the case.
The former executive initially denied knowledge of the bid-rigging during questioning with prosecutors, but later admitted to the allegation after Dentsu officials said they colluded, the source said.
It is suspected that the rigging took place in connection with 26 open bids held in 2018 for the rights to plan test events. These were awarded to nine companies, including Dentsu and fellow ad giant Hakuhodo Inc., as well as a consortium, for a total of 538 million yen ($4.1 million).
The test events -- held to give organizers and sporting federations a chance to trial operations, security and crowd control -- were held between 2018 and 2021 before the Summer Games went ahead after a one-year postponement due to the coronavirus pandemic.
