Ozawa Denies Receiving IIlegal Funds

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TOKYO—A leading figure in Japan's ruling party denied any wrongdoing Saturday as Tokyo prosecutors questioned him in connection with the alleged violation of a political-funds law.

Reuters

Japan's ruling Democratic Party Secretary-General Ichiro Ozawa leaves the stage during the party's annual convention in Tokyo January 16, 2010.

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Democratic Party of Japan Secretary General Ichiro Ozawa said he was asked by prosecutors about a plot of land that his personal political fund management body purchased and about records of his political funding, during questioning that lasted more than four hours at a Tokyo hotel.

"I have nothing to hide and told them all the truth I could remember," Mr. Ozawa said in a news conference.

The questioning was part of the prosecutors' highly publicized probe that has led to the arrest of his close associates over the alleged falsification of funding records at Mr. Ozawa's organization.

A House of Representative member and Mr. Ozawa's former secretary were arrested for failing to record 400 million yen ($4.4 million) used to purchase the Tokyo land. Another secretary already faces other charges related to the funding organization.

Mr. Ozawa said the 400 million yen was his personal money and he had no direct involvement in the actual transaction or record keeping, as in any other cases of his political-fund management.

"It is not a kind of money that I need to keep secret," Mr. Ozawa said, denying some media reports that the 400 million yen may have included a bribe from a construction company.

Asked about the possibility of stepping down from his position, Mr. Ozawa said, "I want to fulfill the responsibilities given to me in my job."

The deepening scandal for the ruling party's top official and key election strategist could deal a serious blow to the government of Prime Minister Yukio Hatoyama in a run-up to the Upper House election in the summer.

The Ozawa scandal has invited attacks from opposition parties in budget deliberations in Diet and is pulling down public support for Mr. Hatoyama's cabinet.

Approval rating in local media polls for his administration fell to below 50% following his associates' arrest, from as high as 80% four months ago, when his party came to power.

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