
Klook Caught Facilitating Illegal ‘White Taxi’ Services — A Scoop
H.I.S. announced that fraudulent and improper receipt of employment adjustment subsidies by its group companies was revealed in a report by a special investigation committee.
Number One Travel Shibuya and Cruise Planet were found to have received fraudulent subsidies and engaged in executive misconduct. European Express was also found to have received subsidies improperly, although there was no evidence of direct instructions from executives.
HIS, Tour Wave, Orion Tour, Lagunasia, Kyushu Sanko Landmark, Kyushu Sanko Bus, KASSE JAPAN, Kyushu Sanko Tourism, Japan Holiday Travel, H.S. Insurance, H.I.S. Okinawa, Kyushu Sanko Retail, Miki Tourist, H.I.S. Hotel Holdings, and Sanko Bus were all found to have received subsidies improperly.
At Cruise Planet, which was newly identified for misconduct, the president condoned employees working during special leave and instructed participation in FAM tours. A director created inaccurate attendance records, while the manager of the Osaka head office instructed employees to work during special leave. At European Express, misunderstandings by applicants and directors led to the improper receipt of subsidies.
In other group companies, multiple employees worked during special leave without recording it in attendance records, although there were no explicit instructions from superiors for them to work during such leave. Data analysis suggested that anywhere from a few percent to nearly half of all claims could be considered improper in some companies.
To prevent recurrence, the special investigation committee proposed that HIS foster compliance awareness, enforce labor management, promote awareness and greater utilization of internal reporting systems. It urged strengthening the management system for subsidiaries, improving operations, revising internal audit systems, and reinforcing management functions.
Based on the investigation results, HIS will promptly calculate the amount to be refunded and will issue corrected disclosures for past annual securities reports and financial flash reports on March 31, and announce fiscal results for the October 2024 term. They aim to announce the development and content of recurrence prevention measures and disciplinary actions by the end of March.