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JAPAN: New Arrests in Japan Fund Raising Scandal

January 16, 2010

By MARTIN FACKLER

TOKYO — Prosecutors arrested two former aides of a leading member of Japan’s ruling party on Friday, adding to a growing scandal over campaign finance that has dogged the new government.

Prosecutors also requested an arrest warrant for a third former aide of Ichiro Ozawa, the secretary general of the ruling Democratic Party, as they investigate some $4 million in improperly reported money used to buy land in Tokyo.

The arrests, announced late Friday night, highlight the financial problems that have plagued the administration of Prime Minister Yukio Hatoyama, who last month faced a similar investigation by prosecutors into fund raising irregularities. While the scandal failed to unseat Mr. Hatoyama, it did erode public support for his administration, which swept into power last summer with promises to end money-driven politics.

Friday’s arrests seem certain to feed calls for the resignation of Mr. Ozawa, a shadowy political operator who is perhaps the most controversial and powerful figure in the new Japanese government. Respected by some, reviled by others and feared by all, Mr. Ozawa is widely seen as the organizer and strategist who helped the Democrats end the Liberal Democratic Party’s half-century rule.

Mr. Ozawa has so far rejected a request by prosecutors that he appear voluntarily for questioning, saying he was too busy. But the pressure seems to be rising on him, after prosecutors raided his office two days ago for evidence in the investigation.

Mr. Hatoyama has so far stood by Mr. Ozawa, telling reporters on Thursday that Mr. Ozawa would stay on as secretary general, the party’s No. 2 spot after Mr. Hatoyama himself.

“He is a unique politician, a one-of-a-kind,” Mr. Hatoyama told reporters. “He worked hard for the Democratic Party to win power, and we want him to continue to work hard for us in the future as well.”

Still, the arrests of Mr. Ozawa’s former aides appear certain to embarrass the Democrats, coming just a day before the party’s first convention since taking power. The investigation has drawn public attention to Mr. Ozawa’s use of similar financing methods and backroom deal-making as the now discredited and demoralized Liberal Democrats.

It is the second investigation by prosecutors into Mr. Ozawa’s campaign finance practices, following a probe last spring that forced him to resign as party head.

On Friday, prosecutors arrested Tomohiro Ishikawa, 36, a Democratic lawmaker, and Mitsutomo Ikeda, 32, and requested a warrant for Takanori Okubo, 48. All three men are former political secretaries for Mr. Ozawa.

According to reports in the Japanese news media, prosecutors have focused on the role of Mr. Ishikawa, who did record keeping at Mr. Ozawa’s political funding raising group. Mr. Ishikawa is suspected of failing to record some or all of the 400 million yen, or some $4 million, in question, much of which was used to buy land in a possible effort to hide the money, the reports said.

Reports said Mr. Ishikawa has already told prosecutors that the cash was handed to him by Mr. Ozawa himself.

View Article in The New York Times

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