JR Kyushu Cuts President's Pay over Scandal at Ferry Unit

Fukuoka, Nov. 26 (Jiji Press)--Kyushu Railway Co., or JR Kyushu, said Tuesday that it will cut President Yoji Furumiya's pay by 30 pct for two months over a scandal in which a subsidiary covered up a water leak incident on a high-speed ferry.

The company also announced disciplinary dismissals for Wataru Tanaka, then president of the subsidiary, JR Kyushu Jet Ferry Inc., and then ofificals in charge of safety and ship operations.

"The JR Kyushu group lacked governance over the jet ferry company," Furumiya said at a press conference the same day. Meanwhile, he said he has no intention of resigning.

Furumiya also said that JR Kyushu plans to seek compensation from the three former subsidiary officials for losses related to the scandal.

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