Japan’s PM apologizes for political scandal after former aides charged with falsifying reports

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Japan’s PM apologizes for fundraising scandal

TOKYO — Japanese Prime Minister Yukio Hatoyama apologized after two former aides were charged Thursday with making false financial reports but refused to step down, saying he did not know about the dubious money.

Prosecutors charged former aides Keiji Katsuba, 59, and Daisuke Haga, 55, with violating laws on political funds, a prosecutors’ statement said. The allegedly falsified reports involved nearly 400 million yen ($4.4 million) in contributions.

The scandal has dominated recent Japanese media coverage and cast doubts about the new government of Hatoyama’s Democratic Party, which took power in September. The parliamentary election win ended the rule of the Liberal Democrats that had continued almost uninterrupted since World War II.

The two former aides are accused of listing dead people as donors to hide where political money came from, as well as underreporting some donations, according to prosecutors.

Hatoyama, who has repeatedly denied any wrongdoing, bowed deeply to apologize for the trouble he caused his supporters and the people of Japan. Prosecutors said the prime minister will not face any charges.

“I feel a deep responsibility,” Hatoyama said at the hastily called press conference at a Tokyo hotel. “If there is a big cry for Hatoyama to quit, then I will respect that. But I will work hard to avoid that.”

He said he did not gain personally from the dubious money and was unaware of the activities of his aides, who resigned once the scandal broke in recent months.

Sadakazu Tanigaki, head of the opposition Liberal Democrats, lashed out at Hatoyama, hinting he should resign.

“This makes a mockery of hardworking taxpayers,” Tanigaki said on nationally televised news. “He should promptly take political responsibility.”

Some of the donations related to the aides’ charges came from Hatoyama’s mother and older sister, prosecutors said.

Hatoyama hails from a rich family, and his grandfather was a prime minister.

Hatoyama acknowledged he received 15 million yen ($170,000) per month from his mother to support his political activities, saying he would pay back taxes and penalties of more than 600 million yen ($6.7 million) dating back to 2002.

The charges are another blow to Hatoyama, who has seen support ratings for his government fall gradually after the parliamentary elections that swept him to power.

Japan has been fighting a sluggish economy, and Hatoyama’s policies to curb greenhouse gas emissions have been unpopular in corporate circles. The Democrats have also flip-flopped on policies on taxes, cash payments for children and security relations with the U.S.