Democratic Pary of Japan not that different from Liberal-Democrats after all

[Savonarola]

Shock Horror

Ozawa, DPJ set for war with prosecutors
Ozawa group suspected of laundering slush fund
THE ASAHI SHIMBUN


Prosecutors suspect an organization of political kingpin Ichiro Ozawa took out a 400-million-yen ($4.4-million) bank loan to conceal a slush fund that was used to buy land in Tokyo in 2004.

The bank loan was extended on the day Ozawa's fund management organization, Rikuzankai, bought the residential land in Tokyo's Setagaya Ward for about 350 million yen ($3.85 million).

Tokyo prosecutors suspect the money used for the land purchase contained funds provided by a general contractor in connection with orders for a dam construction project, and that Ozawa's group was determined to hide it.

Three current and former aides of Ozawa, secretary-general of the ruling Democratic Party of Japan, were arrested on suspicion of falsifying Rikuzankai's political fund reports in connection with the 2004 land purchase.

Ozawa has angrily "declared war" against prosecutors. He said he would not resign as DPJ secretary-general and vowed to clear his name.

According to prosecutors, Tomohiro Ishikawa, a Lower House member and former aide of Ozawa who was arrested Friday, bought the Setagaya land under Ozawa's name on Oct. 29, 2004. He used the 400 million yen accumulated at Rikuzankai through various organizations associated with Ozawa.

According to his lawyer, Ishikawa told prosecutors the money used was Ozawa's personal assets inherited from his father.

However, prosecutors suspect the money included 50 million yen from a general contractor that won orders for a dam construction project in Iwate Prefecture, which is Ozawa's stronghold.

According to prosecutors, Rikuzankai set up a 400-million-yen fixed bank deposit on Oct. 29, 2004, and borrowed the same amount with the deposit as collateral. Investigators suspect those measures were taken to make it look like the organization had used the loan--not the slush fund--to buy the land.

Prosecutors also discovered that Rikuzankai paid Ozawa 200 million yen each in 2005 and 2006 out of its savings, likely to repay the bank loan.

Consequently, the 400 million yen borrowed from the bank in 2004 remained unused at Rikuzankai, until it went to Ozawa in 2007, they said.

According to prosecutors, Rikuzankai could not mention the 400 million yen used in the land purchase in its political fund report in 2004. The group could not report the return of the money to Ozawa in 2007, either.

But if Ozawa or other officials were asked where he received the 400 million yen in 2007, they could say it came from Rikuzankai.

The suspects are believed to have violated the Political Fund Control Law by failing to report: the 400 million yen from Ozawa as income in Rikuzankai's political fund report for 2004; the purchase of the Setagaya land in the same report; and the transfer of 400 million yen from Rikuzankai to Ozawa in its 2007 report.

Prosecutors said they are also checking five other Rikuzankai-related real estate deals for which money was borrowed from banks with savings as collateral.

Excluding the 2004 deal, Rikuzankai had bought 14 pieces of real estate since 1994. 

[The Brain]

orders for a dam construction project

Whoa, don't write articles while enraged.

[Neil]

Was it Tim or Spellus that was all excited about the DPJ?  I know it was one of those puppydog-types.

[Ed Anger]

Ozawa

Last seen commanding the carriers in the Sho-Go operation.

[jimmy olsen]

Was it Tim or Spellus that was all excited about the DPJ?  I know it was one of those puppydog-types.

Wasn't me.

[Neil]

Was it Tim or Spellus that was all excited about the DPJ?  I know it was one of those puppydog-types.

Wasn't me.

Hope and change are more Spellus' speed anyways.

[Razgovory]

Was it Tim or Spellus that was all excited about the DPJ?  I know it was one of those puppydog-types.

Wasn't me.

Hope and change are more Spellus' speed anyways.

Yeah, Tim is a disappointing stagnation type of guy.