Dentsu Group Forms 'Special Committee' To Probe Bid-Rigging Allegations

Dentsu Group has announced a special committee comprised of three independent directors that will look into allegations that certain subsidiaries in Japan engaged in bid-rigging activities related to venue management bids for the 2020 Tokyo Olympic and Paralympic Games.

The outside directors—all members of Dentsu Group’s audit and supervisory committee-- will hire outside experts to help with the probe and make recommendations.

The announcement of the special committee follows news reports that the Tokyo prosecutor’s office and the government Fair Trade Commission are considering charges against Dentsu and other agencies including Hakukodo, Kokyu Agency and event companies Cerespo, Fuji Creative and Same Two.

Dentsu has reportedly already been suspended by two regional governments in Japan from bidding on contracts for one year.

 

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