Japanese Ad Giant Indicted on Bid-Rigging Charges for Olympics

Japan’s largest advertising agency is one of six companies indicted for allegedly rigging bids for the Tokyo 2020 Olympics and Paralympics. 

Dentsu Group, Hakuhodo DY Holdings, Tokyu Agency, Fuji Creative Corporation, Cerespo, and Same Two, along with seven individuals, were indicted on Tuesday following months of investigations into the planning and sponsorship of the Games. 

They’re accused of rigging bids worth $320 million for Olympic “test events,” or dress rehearsals.

Roughly half of the 26 test events only had one firm bidding for each, resulting in contracts awarded with no competition. 

Dentsu president and CEO Hiroshi Igarashi reportedly admitted his firm’s involvement. Koji Henmi, former assistant chief of the sports department at Dentsu, was arrested on Feb. 8 for his alleged involvement in the bid-rigging. Last year, a former Dentsu executive was arrested in a separate probe.

In response, Dentsu claims it had set up a committee of outside experts to review and investigate the case, and Dentsu Japan’s CEO and other executives are set to return some compensation for six months.

If the allegations are proven, Tokyo Gov. Yuriko Koike has said she plans to seek damages from Dentsu and other organizers for driving up the hosting costs for Tokyo and taxpayers.