Scandal tainted Okishin Construction files for bankruptcy

Okishin Kensetsu Construction Co. of Uruma City has sought bankruptcy protection having encountered what the company officials call a “serious cash-flow problem.”

This February, Akira Taba, one of the company executives, was arrested on suspicion of collusive bidding involving an Uruma City Board of Education construction project. As a result, the company has not been allowed to participate in bidding for public works as it lost the public trust, and that led to further poor performance.

The company was established when two construction companies, Ikemiyagi Kensetsu and Okishin Kensetsu, merged in 2004, and it has done business in both private and public works. However, an increasingly fierce competition in the industry has pushed the company balance sheet into red since 2013.

01:44 28 Oct , 2016