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World News

Japan Highway chief refuses to resign

Japan Highway Public Corp. President Haruho Fujii on Oct. 6 defied an order by transport minister Nobuteru Ishihara to resign, forcing Ishihara to begin the formal process of sacking him.

Ishihara told the head of the troubled expressway operator Oct. 5 to step down to take responsibility for the semigovernmental firm's controversial balance sheet.

Fujii called the minister's secretariat the following day and said he wanted to "refrain from writing his resignation himself."

Fujii's rebellion casts doubt over the control Ishihara and the ministry have over the entity. It could also stand in the way of the government's efforts to privatize four public expressway operators in fiscal 2005.

Under Article 13 of the Japan Highway Public Corporation Law, the transport minister can remove executives of the public corporation if they are deemed unfit for the job.

According to ministry officials, it is the first time a process has been launched to remove an official ranked director or higher.

The Land, Infrastructure and Transport Ministry will under the Administrative Procedures Law conduct a hearing Oct. 17 to hear Fujii's version of events. Ministry official Shigetaro Yamamoto was selected to preside over the hearing. The ministry will still have to notify Fujii in writing.

The transport ministry still must begin looking for Fujii's replacement after the hearing. The vice minister said he had no idea how long the process will take. In the meantime, Fujii will remain in his post


Shukan ST: Oct. 17, 2003

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