Ruling party's kingpin faces grilling in Japan

Published on Saturday 23 January 2010 18:18

THE man who calls the shots in Japan's ruling party yesterday denied wrongdoing in a funding scandal that has hit his party's mid-year election prospects.

Ichiro Ozawa, seen as the most powerful politician in the ruling Democratic Party, was questioned by prosecutors for four hours yesterday – but insisted he would stay in post, despite three of his aides having already been arrested on suspicion of misreporting political donations.

The scandal has eroded support for Prime Minister Yukio Hatoyama's government ahead of the poll for the upper house, risking policy stalemate in the long term.

Ozawa, who holds the key post of party secretary-general, is the Democrats' key campaign strategist and is widely seen as the real power behind Hatoyama's administration.

"I have to apologise to the public about things, including my aides, but I would like to fulfil my duty," he told the press yesterday.

Ozawa also denied that either he or his funding group had received illegal donations, or that he himself was involved in any false reporting of political funds.

The Democrats need an upper house majority to reduce reliance on small coalition partners. The party swept to power last year promising to reduce bureaucrats' control of policy, cut waste and boost consumer spending power to help the weak economy.