H.I.S. has disclosed that its subsidiary, Number One Travel Shibuya, is suspected of fraudulently receiving approximately 100 million yen in employment adjustment subsidies from April 2020 to March 2023. The company is under investigation by the Tokyo Labour Bureau. Number One Travel Shibuya, which sells airline tickets and other products to foreign nationals, has 8 employees, and H.I.S. holds 51.25% of voting rights.
Based on preliminary internal investigations and advice from external expert Anderson Mori & Tomotsune Foreign Law Joint Enterprise, it is highly likely that fraudulent reception has occurred. Number One Travel Shibuya will comply with the results and judgments of the Tokyo Labour Bureau’s investigation, including the return of the received amounts.
Furthermore, to ensure that there were no issues with the receipt of the employment adjustment subsidy across the entire H.I.S. Group, an investigation and analysis have been requested from Anderson Mori & Tomotsune Foreign Law Joint Enterprise. The company will voluntarily report progress to the Tokyo Labour Bureau and follow directions while continuing its deliberations. H.I.S. had put nearly all its employees on temporary leave from April 2020.
Due to the time required to assess the impact on consolidated financial statements, the financial results announcement for the fiscal year ending October 2024, which was scheduled for December 13, will be postponed.
