Yokohama blew whistle in marine hose case - report

Tokyo, Japan - Yokohama Rubber Co informed the anti-trust authorities about a price-fixing cartel in the marine hose business, according to a report in the leading Japanese business paper, Asahi Shimbun.

The paper said Yokohama won immunity for prosecution by Japanese, European and United States authorities, in exchange for information on the cartel and full cooperation. Information supplied by the company led to the arrest in early May of eight executives from various companies involved in the marine hose business.

Yokohama could not be contacted by ERJ, but in a statement released in May, the company said it was, "the subject of on-site inspections on May 7 by the Japan Fair Trade Commission at its head office and its Hiratsuka Plant in connection with marine hose transactions. Yokohama and its affiliated companies abide by a policy of complying rigorously with all pertinent laws and ordinances." The statement continued, "Management at Yokohama takes the on-site inspections by the Fair Trade Commission extremely seriously, and the company cooperating fully with the authorities in the investigation." The company concluded by saying it will not discuss the matter further while the investigation is underway.

According to the Asahi Shimbun paper, the US Justice Department offered the immunity deal to Yokohama Rubber after a US-based agent, who negotiated deals on behalf of Yokohama, was arrested on suspicion of involvement in an unrelated cartel activity. That agent disclosed the marine hose cartel and Yokohama's involvement.

According to the paper Yokohama has twice been accused of rigging bids in Japan over defence-related contracts, so management decided to blow the whistle on the marine Hose cartel.

US officials then used Yokohama's email system and names to set up a meeting with the cartel organisers, who, according to the paper, had not met for several years. After the meeting in Houston, US investigators arrested the participants and later arrested another Bridgestone executive.

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Statement from Yokohama Rubber

Headline Asahi Shimbun (Japan)