Wakachiku suspended from ODA projects

Wakachiku suspended from ODA projects

TOKYO (Dow Jones): Japan's foreign ministry said Friday it has
suspended Wakachiku Construction Co. and an unlisted company from
receiving orders for Official Development Assistance, or ODA,
yen-loan projects, starting today.

The ministry said it meted out the punishment because
Wakachiku submitted a false report to the Indonesian government
in connection to a 5.25 billion yen (about US$426,800) ODA
project in Indonesia.

Although the ministry didn't reveal the nature of the false
report, an official at the Japan Bank of International
Cooperation, or JBIC, said Wakachiku reported one of the people
who were sent to Indonesia had "retired" from the company, even
though this person was still receiving money from Wakachiku.

Furthermore, this person was assigned as a consultant to the
5.25 billion yen ODA project in Indonesia, which violated ODA
guidelines that require project consultants to be fully
independent from companies that bid on projects.

JBIC is one of the Japanese government's affiliated banks that
provides ODA financing.

As part of the ministry's penalties, Wakachiku will be
prohibited from receiving orders for ODA's yen-loan projects for
two months beginning today.

The unlisted firm, called "Japan Port Consultant," will be
prohibited from getting orders for ODA's yen-loan projects for
one month starting today, the ministry said.

Wakachiku shares fell as much as 2.8 percent before finishing
unchanged at 106 yen in Tokyo trading Friday.