Nagoya Railroad Co. admitted Friday it deliberately falsified a report to authorities on a February traffic accident involving one of its buses because the driver involved had an expired license.

"This is a scandal that should not have occurred," Misao Kimura, president of the company commonly called Meitetsu, told a news conference.

He said he will reduce his pay by 10 percent for six months to take responsibility for the fiasco, while three other executives will take 10 percent pay cuts ranging from three to six months.

According to an investigation by the Chubu Transport Bureau, a car bumped the rear of a bus as it was leaving a bus stop in Okazaki, Aichi Prefecture, on the evening of Feb. 19.