Wanted: clear view of Japan Highway

日本道路公団の「債務超過」

Financial health is a key factor in deciding how much taxpayer money, if any, will be required for privatization. It affects prospects for highway construction. If the corporation is insolvent, then it will be difficult for the new company to continue building toll roads.

What is needed is accurate financial information. Yet the corporation seems unwilling, or perhaps unable, to present a true picture of its condition. Adding to the apparent confusion is Japan Highway President Mr. Haruho Fujii.

During Diet testimony, Mr. Fujii denied the existence of "internal" financial statements that a whistle-blower had leaked to a popular magazine. The documents showed the corporation to be insolvent by ¥617.5 billion. Afterward, however, Mr. Fujii said the papers had been prepared by a voluntary study group of employees — not as a formal company project. The revelation has roiled the mammoth organization, leading to demotions of some ranking officials.

In his July 25 media conference, the first since he took office three years ago, Mr. Fujii said an internal investigation had not discovered the documents. But an in-house inquiry had quoted several employee accountants as saying they had put together a financial status report and submitted it to their immediate boss.

As things stand, it seems difficult to take Mr. Fujii's statement at face value. Doubts linger over whether the corporation systemically engaged in the preparation of those documents.

The scandal comes at a crucial time for Japan Highway. Following its privatization, tollway construction will be undertaken partly by the new company and partly by central and local authorities. Among the questions are how construction work should be shared and in what order should priorities be established.

There is reportedly a view within the government that Mr. Fujii must go, and that his successor should be selected from the private sector. If that is the case, the government should appoint his replacement promptly to clear up the doubts about the corporation's finances.

In June, Japan Highway published its "official" financial statements showing assets exceeding liabilities by ¥5.7682 trillion in fiscal 2002. However, auditors formally rejected the report for applying "vague" accounting rules. At the moment, there are no authentic documents proving the financial viability of Japan Highway.

There are two ways for a public corporation to evaluate its assets — a procedure essential to preparing financial statements: One is to tally up the prices at which assets were originally purchased (acquisition-cost method). The other is to allow depreciation based on prices at which assets are newly acquired (replacement-cost method). Both are said to have their merits and demerits.

The replacement-cost method was reportedly used in Japan Highway's "official" financial statements. By contrast, the "private" version divulged by the whistle-blower is based on the acquisition-cost method. Speculation is that the former formula may have been used to cover up excess liabilities.

The corporation is said to have demoted three employees involved in asset evaluation — all of them accounting experts. The organization has filed a libel suit against the whistle-blower — the former deputy chief of a regional office — as well as against the magazine publisher, seeking ¥30 million in damages.

These moves seem unusual in view of the denials of a cover-up by Mr. Fujii, who has emphasized that the corporation has never tried to window-dress its financial statements and that the leaked documents were prepared privately during employees' brainstorming sessions.

Insiders attribute the whole episode to a power struggle between Mr. Fujii, who calls for continued highway construction, and pro-privatization groups that give priority to debt repayment over road construction. Whatever the motives, Japan Highway needs to be placed under closer scrutiny to ensure that it will be privatized in a way that serves the public interest.

The Japan Times Weekly
Aug. 9, 2003
(C) All rights reserved

      債務超過であれば、民営化後の新会社による有料道路建設継続は困難である。

      必要なのは正確な財務諸表であるが、JHはそれを提示していない。JHの藤井総裁の言動も混乱を深めるばかりだ。

      JHの内部告発者は内部資料とされる財務諸表を雑誌の記事で暴露したが、藤井氏は国会証言でその存在を否定している。この資料によれば、JHは6175億円の「債務超過」に陥っているという。

      JHの民営化後は、新会社と中央政府、地方自治体が有料道路の建設を共同で行うことになるが、その詳細は決まっていない。

      藤井氏を更迭するのであれば、早急に後任者を選任し、JHの財政についての疑惑を払拭すべきである。

      JHが6月に正式に発表した財務諸表は、5兆7682億円の「資産超過」を示している。

      資産評価には、資産取得価格をもとに時価を算出する方式と、現在の道路建設費用を計算して減価償却を行う方式がある。JHの公式資料は後者を採用し、債務超過を隠蔽したといわれる。内部資料が用いた方法は前者である。

      JHは資産評価に関係した3人の職員を降格させ、内部告発者と記事を掲載した雑誌に対し名誉毀損訴訟を起こしたという。

      関係者によると問題の背景には高速道路建設継続を主張する藤井派と、道路建設より負債償還優先を主張する民営化支持派の権力争いがあるという。公益にかなう民営化のためJHの監視を続ける必要がある。