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Feds Shut Down Fung Wah Bus Company

BOSTON (CBS) - The Department of Transportation has shut down the Fung Wah bus company.

The DOT says that Boston-based Fung Wah stopped cooperating with its investigation.

This is the first time the Department of Transportation has revoked a motor carrier's operating authority under a law signed by President Obama last year.

"Bus companies that jeopardize public safety and refuse to cooperate with our investigators have no place on the road, and now, thanks to our additional authority, we can take them off," said U.S. Transportation Secretary Ray LaHood. "Safety is our highest priority, and we will continue to do all we can to ensure that unsafe bus companies are not on our roads."

On Tuesday, the feds ordered Fung Wah to immediately send all of its 28 buses in for a thorough inspection after the I-Team uncovered extensive safety problems with the company's fleet.

Prior to Friday's shut down order, Fung Wah could have rented or leased buses to continue operating.

Dan Ronan of the American Bus Association released the following statement Friday:

"The American Bus Association is very pleased that Federal and State officials are taking strong, aggressive action and have shut down Fung Wah Bus Company. Motorcoach Passengers and the travelers who shared the road with this company are much safer. The federal government recently promised ABA it would work hard to get unsafe and illegal companies like Fung Wah off the road and they are upholding that promise."

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