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Fukuoka construction contract cancelled after breach of anti-yakuza clause


Dec 10, 2010

Fukuoka Prefecture announced they will annul their contract with local company Matsuo Construction on a major dam project after it was revealed a company executive had dealings with an organised crime boss. This will be the first time a deal has been cancelled in Fukuoka since the April 2008 movement to include anti-organised crime clauses in contracts.

According to the prefectural government, 12 companies entered into a competitive bid for the Tanoura anti-erosion dam project in September, with Matsuo winning at ¥42.2 million. At the time the contract was drawn up, the company signed a document saying they had no relations with any organised crime gangs. It was discovered by police in October, however, that the president of the company had recently gone on a golfing trip with a yakuza boss. Upon being told the contract would be annulled, the president simply said that he understood, without further comment.

The dam was scheduled to be completed in March of next year, and at the end of November stood 70 percent done. The government plans to pay Matsuo for their work up to now, minus 10 percent for breach of contract, and will find another company to bring the project to completion.

Read the original article here.

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