Japan Highway Public Corp. will dismiss a senior branch official for his recent allegation in a monthly magazine that Japan Highway President Haruho Fujii hid a financial report showing the corporation had a negative net worth, sources said Friday.

The government-backed entity will convene a disciplinary panel to decide on the future of Sachio Katagiri, deputy head of the Shikoku branch. It will also file a libel suit against him and the publisher of the magazine, Bungei Shunju Ltd., the Japan Highway sources said.

Earlier Friday, Fujii reported to Chikage Ogi, minister of land, infrastructure and transport, the results of an in-house investigation into the allegation.