Japan Press Weekly

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2009 January 21 - 27 [SCANDAL]

Akahata reveals the whole story of political donations from Nishimatsu Construction Co.

Akahata has found that the scandal-tainted Nishimatsu Construction Co. used its two political action groups to give more than 110 million yen in political donations, including purchases of fundraiser tickets, to 17 politicians of the ruling Liberal Democratic Party and the opposition Democratic Party.

The two political organizations are Shin Seiji Mondai Kenkyu-kai (New Political Affairs Study Association) established in November 1995, and Mirai Sangyo Kenkyu-kai (Futurist Industries Study Association) established in June 1999. Both were dissolved in 2006.

The political funds reports submitted to the government show that up until 2006, these Nishimatsu-related political action groups collected a total of 590 million yen in membership fees and fundraiser fees and distributed about 470 million yen to politicians.

Akahata has found that the Aso Cabinet’s Economy, Trade and Industry Minister Nikai Toshihiro himself as well as his political action group received a total of 8.6 million yen in political funds in various ways, including the purchase of fundraiser tickets.

Other LDP politicians involved include former Prime Minister Mori Yoshiro, who received 5 million yen, and former LDP Secretary General Kato Koichi, who received 14 million yen.

Nishimatsu also gave the Democratic Party of Japan President Ozawa Ichiro 31 million yen, and 2 million yen to Diet Affairs Committee Chair Yamaoka Kenji.

The two political organizations were headed by a Nishimatsu Construction Company former official who was also an executive member of a Nishimatsu subsidiary that played a role as fund manager for Nishimatsu Construction.

A former president of Nishimatsu Construction, a second-tier construction company, was arrested on suspicion of violating the Foreign Exchange and Foreign trade Control Law by bringing into Japan slush funds generated through operations abroad. He is also suspected of using the money for political funds and to buy politicians’ influence.