Japan Gov't looks to replace executives of trouble-plagued JR Hokkaido

Japan Gov't looks to replace executives of trouble-plagued JR Hokkaido
http://mainichi.jp/english/english/newsselect/news/20131001p2a00m0na0080...
Following the discovery that safety problems such as warped tracks went ignored under the jurisdiction of the Hokkaido Railway Co. (JR Hokkaido), the government on Sept. 30 started talks on replacing the company's executive board.

The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) has been conducting an on-site investigation of the company, both of its tracks and trains, as well as of its business practices.

At a Sept. 30 press conference, Chief Cabinet Secretary Yoshihide Suga said, "Based on the on-site investigation, the Ministry of Land, Infrastructure, Transport and Tourism will give guidance to ensure that trust in the rail industry is not lost."

It is unusual for such an on-site investigation to consider even the status of a company's executive board. However, according to an MLIT senior official, the government feels that replacing the executives is necessary to rebuild public trust in the rail company.

Replacements may include executives from other rail companies like East Japan Railway Co. (JR East).

As JR Hokkaido's shares are 100 percent owned by the Japan Railway Construction, Transport and Technology Agency, a government-funded independent administrative corporation, executive appointments at the company require approval from the Cabinet. The appointment of JR Hokkaido's president, Makoto Nojima, 56, was just recently approved by the Cabinet in May.

October 01, 2013(Mainichi Japan)

Click here for the original Japanese story