The Department of Infrastructure says it's investigating after a tram's brake failed on Snaefell.
The incident happened on Friday, while passengers were on board - the tram ran backwards 200 yards before mechanical brakes kicked in.
The DOI says it's now working with the Island's Health and Safety at Work Inspectorate.
In a statement, the department says the matter is being treated very seriously and it's committed to ensuring the safety of passengers and crews.
It adds it won't be commenting further while the investigation continues.
Six weekend ferry crossings could face disruption
President of Tynwald announces retirement
Police close Mountain road
Fuel firm says "fingers crossed" for calmer energy costs
Ring doorbells will need data protection registration - but shouldn't cost you money
Hospice UK head calls Island cuts "cack-handed" ministerial muddle
Bus drivers voting on "final offer" from government
Vampire show featuring Manx ferry cancelled