In recent weeks, Japan Highway Public Corp. has come under intense scrutiny because of its financial status. The pivotal question is whether the corporation, set to go private in 2005, is solvent or not. The answer remains unclear. Two different sets of financial statements -- one "official," the other "private" -- provide conflicting data.
Financial health is a key factor in deciding how much taxpayer money, if any, will be required for privatization. It also affects prospects for highway construction. If the corporation is insolvent, with liabilities exceeding assets, then it will be difficult for the new company to continue building toll roads.
What is needed now is accurate financial information. Yet the corporation seems unwilling, or perhaps unable, to present a true picture of its condition. Adding to the apparent confusion is the Japan Highway president himself, Mr. Haruho Fujii.
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