Scandals taint private sector / Comsn, Nova wrongdoing shows government’s oversight role vital

The Economy, Trade and Industry Ministry on June 13 prohibited Nova Corp., which operates English conversation schools nationwide, from offering new contracts to students lasting longer than a year for the next six months.

The ministry also will terminate, in the case of Nova, a subsidy to individuals that helps people acquire job skills, which Nova students could obtain to cover part of their tuition fees. From June 20, Nova students will no longer be eligible for the state subsidy.

Both measures effectively block the two companies’ main source of revenue and are very strict–no different from demanding that the two firms withdraw from business.

http://www.yomiuri.co.jp/dy/business/20070619TDY04003.htm

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