Let's Japan.org Debunking Eikaiwa and Ramblings in Japan

The anniversary of NOVA's collapse has quietly come and gone. The Daily Yomiuri and Sankei Shimbun provide an update on what has been going on over the past year. Their stories are unsurprising, as many issues facing former students and instructors have yet to be resolved.

The Daily Yomiuri points out that the government hasn't taken any steps to regulate language schools:

OSAKA--Even though it has been a year since Nova applied for court protection under the Corporate Rehabilitation Law, the central government has done little to ensure the private language school industry improves its operations.

The failure of Nova, which was the largest language school in the nation, has sowed public distrust in the industry.

Moreover, many former Nova students have not been compensated for tuition fees paid in advance, even though the school's operations have been taken over by Nagoya-based G.communication Co.

On Thursday, a group set up by former Nova students submitted a petition to Seiko Noda, state minister in charge of consumer affairs, requesting stronger measures to protect language school students.

"I'd like the authorities to investigate [the matter] in depth so similar problems don't happen," a 35-year-old female former Nova student said.

Although there are no regulations on the establishment of language schools, the law that covers such businesses was revised in 1999 to regulate them to some extent, allowing students to cancel contracts with the schools, for example.

Although Nova had many contract issues before it failed, the Economy, Trade and Industry Ministry supervising the law was slow to take punitive measures against Nova, such as banning it from entering into contracts with new students.

The ministry's failure to act in time was due, in part, to the matter being covered by multiple central governmental ministries and agencies.

The ministry is urging the industry to create voluntary rules, such as setting a tuition ceiling in contracts.

Urge the industry to create voluntary rules? WTF? This is self-regulation and is nothing more than passing the buck. What a joke. Draw up some regulations and put your foot down and enforce them.

The Yomiuri also notes that the students have yet to be compensated. Will they ever be?

Many of the about 300,000 students who had contracts with Nova when it failed have not been compensated, and former Nova managers have said payments made in advance are not likely to be refunded.

G.communication Co. offers classes to students--at 379 locations as of Friday--for 25 percent of the advance tuitions paid to Nova. However, only 70,000 of the students have signed up for the classes.

Although many students complain that there are no classes within easy distance, G.communication has been working to expand the number of its locations, but has not said how many.

Also, 55 firms operating language education schools, mostly belonging to two industry organizations, announced they would accept a total of about 20,000 former Nova students, offering such perks as no enrollment fees. More than 10,000 people are said to have accepted the offer.

The Sankei shimbun has a similar story, but focuses on Nozomu Sahashi's culpability in the largest consumer disaster since the end of the Second World War.

About 2300 former NOVA students have set up the Nova Seitonokai in Osaka. One student says she joined NOVA in October of 2003 and paid approximately ¥700,000 in advance for German and English lessons. After NOVA went bankrupt, she decided to continue studying at the new NOVA run by G.education. However, her school was far from home and the number of German lessons offered fell dramatically. She wants Sahashi to explain how NOVA failed and for him to take responsibility.

There are also questions about Sahashi's silence following his arrest and indictment (and later release on bail) for making off with ¥320 million from a staff fund in June. Since his release, he has stayed out of the public eye. Sahashi is apparently living by himself in an apartment in Osaka. The Sankei says that he is apologizing for what happened to those around him, and is currently looking for work so he can raise money to pay compensation to the students.

Sahashi's lawyers, however, insist that he did everything he could to raise money to save the company. As for stealing from the staff fund, Sahashi did intend to use the money to compensate students, but his lawyers claim that the fact he was "borrowing it in advance" raises questions about any illegality on his part. They intend to plead innocent once the case goes to trial.

The articles ends with a quick look at how G.communication is doing. The company operates 379 schools, including 126 it assumed when it took over from NOVA. Ninety percent (approx. 74,000) of its customers are former NOVA students. But even when one includes the 10,000 students accepted by 25 other schools at the request of METI and measures such as waiving sign up fees, only 30% of NOVA's students have decided to continue studying.

Everything appears to be coming to a head. The government has made no progress in trying to regulate language schools. Two former instructors are seeking to get the Osaka District Public Prosecutor's Office to re-examine its decision to not press charges for the non-payment of wages. There is also a ¥16 million lawsuit against Sahashi and his directors in the works. Sahashi, the misappropriation of lesson fees, and the "NOVA Way,"--the bicycle business model--will soon be before the courts.

Sankei shimbun article

ＮＯＶＡ破綻から１年　“ワンマン経営者”元社長は雲隠れ

2008.10.26 22:11

英会話学校「ＮＯＶＡ」（大阪市、破産手続き中）が大阪地裁に会社更生法の適用を申請してから２６日で丸１年を迎え た。元受講生約３０万人が前払いしたまま返還されない受講料が約５６０億円に上る、「戦後最大の消費者被害」となったが、元受講生の救済は進んでいない。 一方、「ワンマン経営者」としてＮＯＶＡを率いた元社長、猿橋望被告（５７）＝業務上横領罪で起訴＝は“雲隠れ状態”で沈黙を守ったままだ。

説明求める被害者

「語学を学びたいという純粋な思いを踏みにじられたことに怒りを覚える」

約２３００人の元受講生でつくる「ＮＯＶＡ生徒の会」（大阪市）のメンバーで、同市北区の会社員女性（３５）は悲痛な声を上げる。

女性は外国人の親類とコミュニケーションを取りたいと平成１５年１０月にＮＯＶＡに入会。大阪・梅田校で英語とドイツ語のレッスンを受講していたが、突然 の閉鎖。前払いした受講料は約７０万円に上り、事業を引き継いだ「ジー・エデュケーション」（名古屋市）の「新ＮＯＶＡ」に登録した。しかし教室が遠く なって通いづらくなり、ドイツ語のレッスン数も大幅に減ったため足が遠のいた。

女性は「なぜこのような事態に陥ったのか。猿橋氏はきちんと説明した上で謝罪してほしい」と訴える。

無罪主張も視野

猿橋被告は今年６～７月、社員互助組織の積立金３億２０００万円を流用したとする業務上横領容疑で逮捕、起訴された。その後、保釈されたが、公の場で一切説明していない。

関係者によると、現在は大阪市内のマンションで１人暮らしをしている。周囲に「受講生に迷惑をかけて申し訳ない。被害弁償も考えないといけない」と語り、資金繰りのため職探しをしているという。

一方、猿橋被告の弁護人は「被告自身も当時、会社を建て直すため金融機関から資金を借り入れるほど切迫した状況だった」と強調。刑事責任についても 「社員の積立金を元受講生への返還金にあてたが、当時の金の流れをトータルにみれば“前借り”したという評価もあり得る」と違法性に疑問を呈し、今後の公 判での無罪主張も視野に入れて準備を進めている。

一方、元外国人講師らへの賃金不払いを巡り、労働組合「ゼネラルユニオン」に加入する元講師２人が今月２３日、労働基準法違反罪で書類送検された猿橋被告を不起訴とした大阪地検の処分を不当として検察審査会に審査を申し立てた。

「継続」は３割弱

ジー社は昨年１１月、ＮＯＶＡから事業を引き継いだが、全国の元受講生約３０万人の大半は救済されていない。

現在、ジー社は継承した１２６校を含む３７９校を展開しており、受講生の９割（約７万４０００人）がＮＯＶＡからの継続組。しかし、経済産業省からの要請 で入会金免除などの優遇措置を設けた２つの業界団体の加盟社約２５社が受け入れた約１万人を含めても、受講を継続したのは全体の３割弱にとどまる。

語学学校との契約を巡るトラブルなどに対する行政側の対策も進んでいない。

近畿在住などの元受講生２４人が今月１７日、猿橋被告を含む旧経営陣や監査法人に前払い受講料約１６００万円の返還を求め、大阪地裁に提訴した。破綻後、全国で初めての集団訴訟となった。

多額の受講料を事業資金に注ぎ込み、自転車操業を繰り返した「ＮＯＶＡ商法」。その是非が法廷で問われようとしている。