Nova used staff welfare fund to pay debts
Not exactly the best way to look after the welfare of your employees:
OSAKA–About 300 million yen contributed by employees of the bankrupt language school chain Nova Corp. to a staff welfare fund was transferred to a company bank account in July to cover operating costs and done without the approval of employees, the police have said.
According to the police, former Nova president Nozomu Sahashi ordered the transfer of the entire balance of the fund to a Nova business account to allow the payment of refunds to students who had canceled contracts with the financially troubled firm.
The police are investigating the case as possible embezzlement in the course of business by Sahashi, who owned the affiliate firm that handled the money transfer.
For more on the continuing Nova mess, check out LetsJapan and GComm NOVA blog.
