Vietnam launched investigations and detained several transport officials after learning that these officials had engaged in a JTC graft scandal.
On March 20, JTC President Tamio Kakinuma admitted that the Tokyo-based railway consultant firm had paid "kickbacks" to foreign civil servants in Vietnam, Indonesia and Uzbekistan in return for orders for five ODA projects.
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He revealed that JTC paid JPY 80 million (about US$780,000) to win a US$41 million urban railway bidding contract in Vietnam, funded by the Japanese Government's official development assistance (ODA).
At a meeting in Hanoi on June 2, Japanese officials acknowledged Vietnam’s efforts and briefed Vietnam on the progress Japan has made in investigating the case.
Both sides discussed measures to prevent malpractice and extortion in implementing ODA-funded transport projects in Vietnam.
