|
The Institute for Ethics and Economic
Policy (IEEP) |
|
||
|
42 POLICE OFFICERS PUNISHED FOR CORRUPTION Source from the
Tokyo Metropolitan Police Department, 42 police officers have been punished
for receiving a 10 million yen bribe from a massage parlor owner between 200
and 2002. Among them 4 persons was cut salaries, one faced a warning and 6
given written reprimand and verbal reprimand to 31. (BBC,
Bribery jail sentence upheld for former Japanese construction minister. The Tokyo High Court rejected an appeal against a jail sentence for a former cabinet minister convicted of bribery, but reduced the term by two months after he donated money to charity. Eiichi Nakao has pleaded guilty to accepting some 60 million yen in bribes from Wakachiku Construction Co. in 1996 while in office in exchange for favorable treatment on such things as bidding on public works contracts. He was sentenced to two years in prison in October last year. (Agence France Presse 21 Nov 2003 summary by Sherldine Tomlinson).
MURAKAMI GETS 26 MONTHS IN KSD BRIBERY CASE Former labor
Minister Masakuni Murakami was sentenced to two years and two months in
prison Tuesday and a fine worth 72.88m. yen on charge of bribe taking from KSD,
an organization providing industrial accident insurance to small businesses.
KSD paid about 22.8m. yen in rent for Murakami's office from 1996 to 1998 in
return for having him ask a question in the Diet that benefited the
organization. (Japan Today,
LEGISLATOR
ARRESTED ON ILLEGAL DONATIONS CHARGES. Japanese prosecutors have arrested
Prime Minister Junichiro Koizumi's fellow Liberal Democratic Party member
Takanori Sakai over suspicion of concealing political donations, a violation
of Political Funds Control Law. The arrest came following an endorsement from
the House of Representatives for his arrest, thus lifting the lawmaker's
immunity while the Diet is in session. The prosecutors have earlier arrested
JAPANESE FORMER DIPLOMAT SENTENCED FOR RUSSIA PROJECT FRAUD Akira Maejima, 38, formerly in charge of aid projects for Russia, was sentenced one and a half years in prison and three years in suspension for misusing funds and interfering in bidding over aids projects for Russia. Two others are said to be involved in the case including Muneo Suzuki, House of Representatives member who is being tried separately on bribery and perjury charges; Sato, a former Russian affairs expert who together with Maejima were found to rig the committee's bidding process for a Tokyo-funded power development project on Russia-held Kunashiri Island with assistance of two Mitsui's employees, is also standing trial discretely. (BBC Monitoring Service 06 Mar 2003, summary by Hanh Vu).
Farm chief sues publisher over allegation of corruption. Agriculture minister. Tadamori Oshima has filed a lawsuit against the publisher of a weekly magazine demanding 10 million yen in damages and a published apology over an article that alleged he worked inappropriately for the construction of a vocational school. The article said Oshima helped obtain 400 million yen in government subsidies for an educational institute in Aomori Prefecture for construction of a medical technology vocational school in a town near his hometown. (Japan Times, February 6, 2003 summary by Sherldine Tomlinson).
New law eyed to protect informants. According to reports, staffs that are expose in wrongdoing will be protected from the wrath of their corrupt employers under a new bill being drawn up by the Cabinet Office. The Cabinet Office’s Quality-of-Life Policy Bureau, which handles consumer policies, had initially planned to revise the Consumer Protection Fundamental Law to protect inside sources. However, bureau chief Yasutaka Nagatani told a Cabinet Office panel meeting that a new law is needed to encourage and protect whistle-blowers. Members of the Consumer Policy Committee, a subcommittee of the Cabinet Office’s Quality-of-Life Policy Council, agreed a new system is needed to protect employees who benefit the public by exposing wrongdoing. (The Asahi Shimbun, November 7, 2002, summary Sherldine Tomlinson).
Prison sought for defence official in bribery trial. Prosecutors have demanded a six-year prison term for a former Defence Agency official indicted on charges of breach of trust and bribery in connection with equipment deliveries to the agency’s procurement office in the mid-1990s. Appearing before the Tokyo District Court, prosecutors demanded that Kenichi Ueno, 63, a former deputy chief of the former Central Procurement Office, also pay about 8.38 million yen in fines. Ueno is accused of conspiring with others to reduce the amount defence contractors were to pay back after overcharging the agency for equipment from 1994 to 1995. He has denied all allegations. (Japan Times, November 7, 2002, summary Sherldine Tomlinson).
Prison time, fines sought for former labour minister Prosecutors have demanded a prison term of 3 1/2 years and a fine of 72.8 million yen for former Labour Minister Masakuni Murakami, who is accused of accepting bribes from industrial mutual aid organization KSD. Murakami, 70, a former secretary general of the Liberal Democratic Party’s Upper House caucus, took a total of 72.8 million yen in bribes from Tadao Koseki, then president of KSD, between 1996 and 1998, according to prosecutors at the Tokyo District Court. Murakami received the money as a reward for cooperating with a KSD project to build a university in Saitama Prefecture, said prosecutors s. Former Upper House member Takao Koyama is appealing a ruling by the district court, which sentenced him to 22 months in prison and a fine of 31.6 million yen. (Japan Times, October 31, 2002 summary by Sherldine Tomlinson).
Anti-graft crusader
stabbed to death. Prominent
Japanese anti-corruption politician Koki Ishii appears to have become the
country’s third post-war political assassination victim when he was stabbed
with a sashimi knife in Tokyo yesterday. Ishii was attacked outside his home
as he left for work, his unidentified attacker leaving the knife at the scene
of the crime. Police are investigating the possibility the attack was
politically motivated, with Ishii being involved in exposing bid-rigging
scams, a well-established but illegal practice in Japan where firms collude
on tenders for public works to ensure they all receive sufficient work(The Australian News, October 25, 2002,
summary by Sherldine Tomlinson). MINISTRIES GIVE FAREWELL GIFTS TO BUREAUCRATS: AMAKUDARI JOBS. The term "amakudari" describes a practise whereby government bureaucrats are given cushy jobs in the private sector after their retirement. The practise has been criticised for creating a rather cosy relationship between businesses and the government officials. According to critics, such an environment encourages bribes and other forms of corruption and it hinders efforts for fair business competition in Japan. "The whole system is structured so that it is easier for us to obtain contracts if we have former government workers among us," a company executive said. According to a real estate agent in Kyushu, "the entire public works system is geared so that the private sector takes care of government workers in their old age." (Asahi Shimbun, October 22, 2002, summary by Pavlidis George).
FORMER CONSTRUCTION MINISTER GETS 2 YEARS FOR BRIBE TAKING Former Construction Minister Eiichi Nakao, who was found guilty of receiving 60 million yen in bribes from Hiroshi Ishibashi, former chairman of Wakachiku Construction Co. during a period from 6/1996 to October the same year, has been sentenced 2 years behind bars and a 60 million yen fine some days ago. Nakao's bribe taking grabbed national attention as a typical case of cozy ties between a powerful politician and the construction industry. (Mainichi Daily News, 16 Oct 2002, summary by Hanh Vu).
OVER TEN PERCENT OF REQUESTS FOR INFORMATION UNDER NEW DISCLOSURE LAW ARE DENIED Following the introduction of the freedom of information law in April 2001, 11.4% of requests for information in fiscal 2001 were still rejected by Japanese government ministries and agencies, according to government data. The National Tax Agency received the largest number of disclosure requests at 19,296, followed by the Land Infrastructure and Transport Ministry at 5,129 and the Health, labor and Welfare Ministry at 3,818 while at the same time, only 867 of 2,233 requests for information at the Foreign Ministry which was hit by a series of corruption scandals involving its official, was turned down. In some cases, agencies are not allowed to say whether documents, such as criminal records, existed. (The Japan Times, 02 Oct 2002, summary by Hanh Vu).
BODY TO REVIEW CORPORATE
GOVERNANCE. Alarmed by a string of corporate scandals, the Japan Business
Federation is set to evaluate its corporate governance guidelines. Director
of the social affairs bureau Norio Nakamura, stressed the need to review its
10-point Charter for Good Corporate Behaviour in the light of the recent
forced resignation of its vice-chairman and head of the corporate behavior
committee Hiroshi Araki in relation to a cover-up found at the Tokyo Electric
Power. The ten-point charter for corporate behavior was drawn up in 1991,
later revised in 1996, to make companies cognizant of its social
responsibilities and encourage them to operate freely, openly and
transparently. (Financial Times, September 3, 2002, Summary by Eliza
Villarino). CONSULTANT
FACES TAX-EVASION CHARGE. Criminal complaints were filed Tuesday against
consulting firm Gyosai Toshi Kaihatsu Kenkyujo and its scandal-ridden
director for suspected tax evasion.
Mitsuro Ozaki, 56, is accused of hiding 110 million yen he received
for two years as `consulting fees’’ from more than 10
companies in exchange for confidential information on public-works project biddings. The Tokyo Regional Taxation Bureau, which filed the
complaints with the Tokyo District Public Prosecutors Office, suspects
Ozaki failed to pay 32 million yen in corporate taxes. Ozaki has already been indicted on bribery
charges over 8 million yen handed to Toshio Endo, who resigned as Tokushima governor in mid-March over the
scandal. (Asahi Shimbun, April 24,
2002. Summarized by Jenifer Pomerantz). UPPER HOUSE HEAD RESIGNS OVER KICKBACK SCANDAL The latest blow to
Koizumi, whose government has been under pressure amid a series of scandals involving political heavyweights, including former LDP
secretary-general Koichi Kato, Koizumi's close
ally,
came Friday, April 19 when House of Councilors president Yutaka Inoue was
forced to step down after the opposition boycotted parliament demanding his
immediate resignation. Inoue submitted his resignation to Shoji Motooka, vice
president of the chamber. Inoue, 74,
who temporarily left Koizumi's LDP to take up the honorary post, belonged to
the same political faction as Koizumi.
Local news reports said his secretary received 64 million yen (492,000
dollars) from a construction company between July 1999 and March 2000 in
exchange for helping a public works project. (Agence France Presse, April 19,
2002, Summarized by Jenifer Pomerantz). INOUE HIMSELF IS ALSO CAUGHT IN A LIE. The policy aide at
the heart of a scandal that resulted in Upper House President Yutaka Inoue's
resignation, Yoshio Handa, was caught on tape trying to weasel out of paying
back a 64-million-yen bribe. The
former president of a construction firm in Chiba Prefecture accused Handa of
not making good on a promise to steer him to lucrative public works projects,
and asked that 64 million yen he had handed over be returned. The former president was apparently so
distrustful of Handa that he tape-recorded their conversations. According to the former president, the
tape contains conversations with Handa on Jan. 24, 2000, Sept. 22, 2001, and
Sept. 28, 2001. The former president
drew attention by demanding his bribe money back because though Handa
promised the construction firm he would make sure it won a contract worth 1.2
billion yen, the promised never materialized. An executive with the Chiba chapter of the Liberal Democratic
Party said there was no doubt that the voice on the tape was Handa's In addition, an appointment calendar
kept at the construction company showed that Handa visited the company's
office frequently, upwards of 19 times.
(Asahi Shimbun, April 20, 2002. Summarized by Jenifer Pomerantz). KSD
EX-CHIEF GETS SUSPENDED SENTENCE The former head of mutual aid society KSD got
off with a suspended sentence Tuesday for bribing two
former Upper House lawmakers. The Tokyo District Court
sentenced Tadao Koseki, 80, to a three-year prison term, suspended for five years, for giving a total of 34.5 million yen
to the two politicians. Presiding Judge Kohei
Ikeda said in his ruling that Koseki initiated the bribe but admitted to the
crime and regrets what he did. Koseki pleaded guilty to all charges, and did
not deny the prosecution's description of the bribery and its aim at the trials of the two former lawmakers. Koseki asked former labor minister Masakuni
Murakami, 69, to make supportive comments about the Institute of Technologists, a Gyoda, Saitama Prefecture, training
college, at a January 1996 Diet proceeding.
In return, Koseki paid 22.88 million yen in office rent for Murakami's
political organization from June 1996 to
July 1998. Koseki also asked Takao Koyama, 58, a former parliamentary vice
minister of labor, to increase government subsidies
for the construction of the college. The former KSD chief paid 11.66 million
yen in salaries for Koyama's private secretary from
April 1999 to September 2000. He has also been indicted
for embezzling 80 million yen from KSD, an organization set up to help small and medium-size businesses, and for spending 168 million yen of its money
buying compact discs of a female singer with
whom he was close. (The Asahi Shimbun, March 27, 2002. Summarized by Jenifer
Pomerantz). LAWMAKERS
SUMMONED TO TESTIFY AT DIET The House of Representatives Budget Committee decided Monday 1 April at
its board meeting to summon three scandal-tainted
active and former lawmakers as unsworn witnesses next week. According to the
sources, former ruling Liberal Democratic Party (LDP) Secretary-General
Koichi Kato and former vice-president of the main
opposition Democratic Party of Japan Michihiko Kano will testify 8 April, and Kiyomi Tsujimoto, who served as
policy chief of the opposition Social Democratic Party (SDP), is expected to testify 10 April. Kato
allegedly received a total of about 90m yen in his personal bank account from a political fund managing
body under the control of his one-time close aide, possibly violating the Political Funds Control Law. Kano's two private secretaries were paid
salaries by a Tokyo-based consulting firm, where one of his former secretaries is an executive. The
secretary was indicted on bribery charges in several cases. Tsujimoto, who has been hospitalized due to
fatigue, has been accused of misusing her former secretary's state salary. Both Kato and Kano left their
respective parties but remain lower house lawmakers. Tsujimoto quit as a lawmaker but remains a member of the SDP.
(BBC Monitoring International Reports, April 1, 2002. Summarized by Jenifer
Pomerantz). REMIER
INTERVIEWED ON CORRUPTION, ECONOMY, FOREIGN RELATIONS Prime Minister Junichiro Koizumi said that
tighter anticorruption legislation is necessary to
eradicate political money scandals and restore his administration's public approval rates. "We have already taken so many countermeasures, but scandals
continue to occur. Ruling parties need to take one more step
forward to purify politics," Koizumi said in a television interview with
Japan Broadcasting Corp. (NHK). In the one-hour interview, Koizumi also said
he wants to make stricter legislation by the time the current Diet session ends 19 June. Koizumi
blamed his administration's plunging approval rates on
the string of political scandals, as well as the protracted economic
downturn. The premier, who is also president of the
ruling Liberal Democratic Party (LDP), also said donations to local chapters of each party must be reviewed, a remark apparently in
response to opposition criticism that donations to
such chapters are loopholes in the current political fund control law. His comments on countermeasures for political
scandals come to combat the effect of the recent scandals of several
influential political figures. "It
is up to the person in question to decide (whether or not to resign), be it the lawmaker of the
ruling party or opposition party.’’ …’’It's a question of one's own way of life, and people on the outside should not
make decisions about it," Koizumi, a close friend of former LDP
Secretary General Koichi Kato, said. On economic affairs, Koizumi denied there is
an immediate need to pump public funds into the banking sector, saying the state should not be
involved in work to reconstruct troubled companies too much. He was cautious about cutting corporate or
income taxes in the near future, apparently due to fears about lower tax revenues. Koizumi also suggested a 30 trillion yen cap
on the net issuance of new government bonds per year can be breached in the budget for fiscal 2003
starting 1 April 2003. The issuance of new government bonds in the fiscal 2002 budget came to 30
trillion yen, a decision made from a
lingering pledge made by Koizumi when he took office in April last year. Koizumi claims setting the maximum limit
helped people become aware that fiscal spending should not balloon, but failed to say whether he would
keep the policy in drafting the fiscal 2003 budget. Whether the changes to the budget will help
bolster Japan’s moribund economy remains to be seen. (BBC Monitoring
International Reports, March 30, 2002. Summarized by Jenifer Pomerantz). GETTING
TOUGH ON BID RIGGING. Japanese newspapers are full of scandals over public
works projects’ bid rigging in Japan’s construction industry, the world’s
largest. This important industry,
which accounts for more than 10 percent of the nation’s employed workers, has
become a hotbed of collusion among politicians, bureaucrats and business
executives. The names of major
players in Japan’s political field have been awash in the newspapers, with
articles telling of their scandalous misdeeds against the public. Former Construction Minister Eiichi Makao,
Saburo Sato, ex-aide to former LDP Secretary General, Koichi Kato, Mitsuro
Ozaki, ex-aide to former LDJ deputy leader Michihiko Kano and the governor of
Tokushima Prefecture, the mayor of Shimotsuma, Ibaraki Prefecture’s misdeeds
and errs have all come to light recently.
These scandals are undermining Prime Minister Junichiro Koizumi’s
administration, whose public ratings continue to plummet. The government has tightened enforcement
of the 2001 law governing bids and contracts for public works projects but
since collusion has financially supported the LDP’s long rule, closing
loopholes will be tough. The first
priority in eradicating the routine bid rigging is to strengthen punishment,
which despite the laws guidelines, is still treated with light suspensions
and fines. Second, the Fair Trade
Commission should be strengthened to help revitalize the economy and promote
economic deregulation. Third, retired
bureaucrats should be banned form taking jobs within construction companies,
whose numbers are equivalent to 1/4 of the ministry’s retirees. Limited
access to Japan’s construction market has been a major topic in the Japan-US
trade negotiations, with which Washington is still unsatisfied. Efforts should be stepped-up and
strengthened to eradiate the collusion and bid rigging, which saps the
vitality of a free economy. (The
Japan Times, March 26,2002. Summarized by Jenifer Pomerantz). BUSINESS
FOUNDATION FOUNDER RECEIVES PRISON TERM FOR BRIBERY The Tokyo District Court on March 26 sentenced Tadao Koseki,
80, founder and former head of KSD, a government authorized foundation for
small businesses, to a three-year prison term, suspended for five years, for
bribing two former Diet members.
According to the ruling, Koseki have some 22m yen to former Labor
Minister Masakuni Murakami, 69, in the form of office rent, and some 11.6m
yen to Takao Koyama, 58, a former House of Councilors member in the form of
employee salaries, in exchange for posing questions in parliament on KSD’s
behalf. The court also found Koseki
guilty of embezzling 80m yen from the institute and causing it losses,
providing Murakami with 50m yen in bribes and Koyama 20m yen in bribes;
though the statute of limitations has expired on those bribes. During the hearings, Koseki admitted to
all the charges and apologized for his misdeeds. Murakami, who is also on trial, pleaded not guilty, denying
receiving bribes and exercising his influence. (BBC Monitoring International
Reports, March 26, 2002. Summarized by Jenifer Pomerantz). JAPANESE
ANTI-CORRUPTION CRUSADER FORCEDTO QUIT OVER SCANDAL Kiyomi Tsujimoto, a 41-year-old former peace activist and a
currently Social Democratic Party’s crusader against corruption, gave up her
seat in parliament and resigned one week after her misuse of public funds
worth over 100,000 dollars was brought to light. Hounded by the press, Tsujimoto told reporters, ‘It can’t be
helped because I made a mistake’. Initially denying the report, her office
later admitted that it had used most of the money to beef up its war chest, which
was lacking in funds. Despite her effectiveness
and the lack of a candidate to replace her, her own party leaders strongly
urged her to resign. Tsujimoto
emerged as the scourge of Muneo Suzuki when he testified in parliament under
oath on his own misdeeds. On a late
night new program, Tsujimoto insisted that she would stay on to give
testimony in parliament to expose those conservative politicians who she said
are misusing government funding in similar ways. (Agence France Presse, March 26, 2002. Summarized by Jenifer
Pomerantz). EX-GOV.
TIES TO NEW BRIBERY ALLEGATIONS
Mitsuro Ozaki, a Gyosai Toshi Kaihatsu Kenkyujo consulting executive,
promised former Tokushima Gov. Toshio Endo 10 million yen last spring, around
the same time he asked Endo to influence the outcome of tenders for construction
projects in the prefecture. Although
the bribe was never paid, the allegations of intent to bribe are being
investigated, which is rather unusual but Endo, 58, has been arrested on
separate allegations of accepting 8 million yen in bribes and his connection
to other cases is being explored.
According to sources, Endo met Ozaki in Tokyo last spring and asked
for campaign election donations, and in return Ozaki asked Endo to help
companies win bids for large public work projects in Tokushima Prefecture. One day before the transaction of funds
was to take place, the Tokyo Regional Taxation Bureau searched Ozaki’s office
in connection with another case and discovered the money, foiling the bribery
scheme. (The Daily Yomiuri, Tokyo,
March 24, 2002. Summarized by Jenifer Pomerantz). TUJIMOTO
ACCUSED OF A 15 MILLION Yen GRAFT
Shukan Shincho, a weekly magazine, made allegations against Kiyomi
Tsujimoto, one of the Diet’s most vocal critics on money-related scandals,
that she pocketed some 15 million yen by collecting the salary for a falsely
registered policy secretary.
Tsujimoto, denying any wrongdoings, is considering taking legal action
against the publisher for defamation.
Chief Cabinet Secretary Yasuo Fukuda urged Tsujimoto to consider leaving
the cabinet, if the allegations prove to be true. Tsujimoto registered a woman who worked as a full-time private
secretary for an Upper House Member as her own policy secretary. It is claimed that of the woman’s salary,
Tsujimoto paid the secretary \50,000 and pocketed the remainder. Tsujimoto contends that the salary was
paid in-full to the woman’s bank account.
Tsujimoto said that her motive for hiring the woman was that she was
experienced with lawmaking. The law
states: paid policy secretaries to Diet members are allowed to hold more than
one job. The question at hand is
whether the woman, who had full time employment, actually worked for
Tsujimoto or simply allowed Tsujimoto to register her name in order to pocket
the secretarial allowance. Though
declining to answer how many times the secretary came to her office weekly,
Tsujimoto admitted that she usually talked on the phone with the secretary to
seek advice and information on various matters. (The Japan Times, March 21,2002. Summarized by Jenifer Pomerantz). JAPAN:
KOICHI KATO SHOUD ALSO QUIT AS LOWER HOUSE LEGISLATOR People aren’t willing to accept Kato’s
admission that he was unaware of the misdeeds of his closest aide. Koichi Kato tried though; his resignation
from the LDP was a gesture of accepting blame for a case of huge tax evasion
allegedly committed by Saburo Sato, his treasurer, who was arrested on the
charge. In a press conference, Kato
emphasized that he decided to leave the party repentant for having been
engaged in political activities without paying ‘sufficient attention to
things on (his) doorstep’’. Unlike
Muneo Suzuki, who tearfully insisted on his innocence, Kato failed to take
the issue seriously, regarding the problem as his aide’s issue of misconduct,
and that the heaviest reproof he deserves is for his negligence in overseeing
Sato. Sato worked as closely with
Kato, running the political fund collection effort on Kato’s behalf for the
past nine years. Ironically, in a
speech to his supporters in Tsuruoka, Yamagata Prefecture, Kato said, ‘The
biggest problem is that politicians are not as seriously concerned about
Japan’s future as the general public.’ He then pledged to do his utmost to
restore public trust in politics.
(Asahi Shimbun, March 20,2002. Summarized by Jenifer Pomerantz). SUZUKI
AFFAIR A BOOM TO TV NEWS & RATINGS
The Muneo Suzuki affair has upped the ratings of news shows across the
board and displaced entertainment programming watched by most housewives. When Mr. Suzuki, an LDP lawmaker, was
grilled under oath in parliament about his innumerable alleged misdeeds, the
nation was glued to its television sets.
The scandal has also dominated current affairs programs on weekend
over the last two months. The viewer
rating for the 150-minute live broadcast hit 20.8%, slightly below the 22.2%
that in 1976 tuned to the Lockheed bribery scandal hearings. Those ratings were surpassed by a late
night news show that covered the testimony in depth, which chalked up 23%,
reflecting the widespread interest in the much-despised politician. After the testimony, Suzuki resigned
teary-eyed from the Liberal Democratic Party. The Suzuki affair has also made many other politicians into
household names, for example Socialist Kiyomi Tsujimoto, who grabbed the limelight
in parliament by accusing Muneo Suzuki of ‘lying’, which caused him to lose
control. Following the resignation,
TV stations were inundated with angry faxes that slammed Mr. Suzuki for
refusing to acknowledge his wrongdoings and attempting to deceive voters with
tears. As the LDP is a hotbed of
Suzuki-clones, the storm is unlikely to die down soon. (The Straits Times, March 17, 2002.
Summarized by Jenifer Pomerantz). SATO
REPORTEDLY PAID WITH KICKBACKS Saburo
Sato, the arrested former top aide to LDP member Koichi Kato, was not paid by
Kato but by two companies, including Kosho Corp., the Yokohama-based real
estate agency Sato allegedly used to hold funds gained for favors in
connection with public works projects. Sato is suspected of evading more than
100 million yen in income taxes by concealing about 277 million yen received
in kickbacks from construction firms, including firms in Yamagata Prefecture,
Kato’s constituency. The latest
revelation is that a portion of the funds were used for political activities
by Kato, which may be a violation of the Political Funds Control Law; which
since January 2000, the law has banned corporations from donating money to
individual Diet members through their fund management organizations. The Tokyo District Public Prosecutors
Office has deemed 85 million yen in consulting fees for three years through
2000 paid by construction companies to the Kosho Corp. were part of Sato’s
taxable income, but were never reported.
Additionally, the real estate agency, in 2000, shouldered at least 2
million yen in salaries paid to Kato’s private secretaries; secretaries of
Diet members are to be paid by a fund-management organization or the
legislator and the local chapter of the legislator’s political party. According to the Political Funds Control
Law, such payments are considered donations, and are to be entered into the
Diet member’s income and expenditure report.
However no entries of donations from the Kosho Corp. were ever made.
(The Yomiuri Shimbun-Daily Yomiuri, March 10, 2002. Summary by Jenifer
Pomerantz). TOKUSHIMA
GOVERNOR SET TO RESIGN today
Tokushima Gov. Toshio Endo, 58, who was arrested on suspicion of
receiving over 8 million yen in bribes from a director of a consulting firm,
will submit his letter of resignation, sources say. To avoid disruption of the prefecture’s policy management, Endo
entrusted the resignation letter to a third party to be submitted to
Tokushima Prefectural Assembly Chairman Hajime Shinomiya. Within five days Shinomiya must inform the
chairman of the prefecture’s election administration, thereafter, an election
must take place 50 days from the day after the election committee chairman
receives the letter. Endo is reported
to have received 5 million of the 8 million yen he is alleged to have
received from Mitsuro Ozaki, 56, director of Gyosai Toshi Kaihatsu
Institute. The biggest challenge
facing prosecutors is why and how the money in question was received; if it
was not directly from the constructor, then proving the nature of the payment
becomes more difficult. Though an
antigraft law already exists to stamp out the practice of political
intervention in public work, there are many loopholes that allow corrupt and
shady practices to pass by without prosecution. This case has exposed once again some of the problems in the
decision-making process for public works projects. (The Daily Yomiuri-Tokyo,
March 8,2002. Summarized by Jenifer Pomerantz). FIRM
TRIED TO FUND ENDO’S REELECTION 10
million yen in cash was discovered in 2001 by tax authorities at a business
consulting company in Tokyo that supposedly was given to Tokushima Gov.
Toshio Endo to help finance his reelection campaign for that year. This information surfaced after
Endo was arrested Monday on suspicion of taking 8 million yen in bribes from
Mituro Ozaki, a 56-year old Gyosai Toshi Kaihatsu Kenkyujo (Gyosaiken)
official on trial separately, in relation to contracts for public works
projects. Ozaki vowed to give the
money to Endo to fund his election campaign.
Before the funds changed hands, the Sendai Regional Taxation Bureau
searched Gyosanken’s office on allegations of tax evasion and discovered the
10 million yen in question; consequently, tax authorities started
investigating into the construction companies that had given the money to
Gyosaiken. The funds were donated by
five construction firms who had hoped to gain favor in winning contracts for
large public work projects planned in Tokushima by the prefectural
government. Ozaki reportedly later
returned the money to the five companies. (The Japan Times, March 7,2002.
Summarized by Jenifer Pomerantz). PUT
PAID TO GRAFT Prosecutors say that
Tokushima Prefecture Gov. Toshio Endo accepted over 8 million yen from a
Tokyo-based consultancy for the role he had played in securing a large public
works contract for a client constructor in the prefecture. Endo became acquainted with the manager of
the consulting firm, Mitsuro Ozaki, who was arrested in January, while he was
employed as a Transport Ministry bureaucrat.
Investigations have revealed that Mr. Ozaki received a total of 20
million from the constructor as ‘consulting fees’, and that part of that
payment allegedly went to Mr. Endo.
Prosecutors say that the executive has admitted the charges, but the
governor is still denying taking any bribes.
As the investigation progresses more information is sure to unfold.
(The Japan Times, March 7,2002. Summarized by Jenifer Pomerantz). SHADY
POLITICO-BUREAUCRATIC TIES A Foreign
Ministry investigation continues to expose the influence-peddling of LDP
legislator Muneo Suzuki. With public
interest left ignored, Suzuki, as deputy chief Cabinet secretary in 1999,
intervened in a construction project for a public lodging facility on Kunashiri
Island by requesting that the ministry invite tenders only from Hokkaido’s
Nemuro district, his constituency; which resulted in the ministry limiting
eligibility of companies. The report
clearly states that he used his political leverage in the selection of
bidders, probably with the underlying desires to secure funds for interests
in his constituency. The
investigation, while uncovering many things, leaves many questions
unanswered. Due to the investigation
being conducted in a short period of time, being in-house and without a legal
probe that is unavoidable. With
reports clearly contradicting each other, a separate Diet conducted
investigation would be more effective.
Despite many changes taking place over the years, such as an
introduction of a new electoral system, the relationship between the LDP and
the bureaucracy has not changed. The
Suzuki affair has raised the age-old question: ‘what needs to be done to
correct the shady relationship between legislators and bureaucrats?’ (The Japan Times, March 6,2002. Summarized
by Jenifer Pomerantz). FRESH
REVELATIONS IN SUZUKI AID SCANDAL ADD TO KOIZUMI WOES Until recently, there has been little
interest in Muneo Suzuki, who is well versed in Russian affairs and has heavy
connections to Africa. Lately, the
small but powerful politician’s reputation as the epitome of Japanese
political corruption has been strengthened by confirmed accusations by the
scandal-ridden foreign ministry that Suzuki has been awarding contracts in
Russian-held islands claimed by Japan.
Suzuki, 54, is suspected of channeling aid contracts to companies from
his own constituency, and is also believed to be involved in the dispute that
lead to former prime minister Makiko Tanaka’s hasty removal from office. The lastest news on Suzuki’s corrupt
actions has caused the public to suspect that despite Koizumi’s claim to be a
reform champion, the LDP remains as corrupt as ever. With the threat to block this year’s
budget, politicians of Koizumi’s Liberal Democratic party have urged Suzuki
to testify under oath in parliament, which he has agreed to. Suzuki’s affairs have reinforced the `iron
triangle’ existing between politicians, bureaucrats and industry, which lies
at the root of economic woes for many Japanese. For Mr. Koizumi, the Suzuki affair has become an unwanted test
of his political leadership.
(Financial Times-London, March 5,2002. Summarized by Jenifer
Pomerantz). SMALL-BUSINESS
INSURANCE EXECUTIVE GIVEN SUSPENDED TERM FOR BRIBING MPS On Friday, March 1, the Tokyo District
Court sentanced Katsuhiko Nakamura, 59, guilty of bribery. Nakamura, sentanced to an 18-month prison
term and suspended for four years, is a former senior official affiliated
with the scandal-tainted foundation KSD.
He was found guilty of giving a total of 34 million yen in bribes to
Masakuni Murakami, 69, former labor minister and House of Councilors member,
and Takao Koyama, 58, former upper house member, in exchange for posing
questions of behalf of Tadao Koseki, the founder and former head of KSD. Nakamura gave Murakami bribes in the form
of rent for his offices, while bribing Koyama by paying the salaries of his
two secretaries. All bribes were made
by Nakamura, conspiring with Koseki, in efforts to have Murakami and Koyama
voice supporting issues to help Koseki in his goal to set up the
institute. The ruling on Koseki, 80,
who is on a separate trial, is expected to be handed down March 26. Prosecutors are demanding a four-year
prison term for Koseki, who is charged with bribery, breach of trust and
embezzlement. (BBC Monitoring
International Reports, March 1,2002; summarized by Jenifer Pomerantz).
FOREIGN MINISTER ANNOUNCES POLICY ON MINISTRY REFORM. Foreign Minister Yoriko Kawaguchi expressed her determination to reduce inappropriate influence on the ministry's decision-making. Her 10-point basic policy for reforming the corruption-riddled Foreign Ministry includes internal inspections of the ministry's headquarters and overseas offices with the help of outside experts such as lawyers and certified public accountants. Written records will be made of any demand from a politician. Prime Minister Junichiro Koizumi, who told his cabinet ministers to eradicate the influence of politicians in their ministries' decision-making, told: "I hope the Foreign Ministry carries out good reforms proactively, taking in opinions from the private sector." (BBC Monitoring Service, Kyodo News Service, February 12, 2002, summary by Pavlidis George).
CALL TO SCRAP CLOSED- DOOR APPROACH INORDER TO CRACKDOWN ON CORRUPTION A private advisory panel, chaired by businessman Ryuzo Sejima, has issued a report of its recommendations to the Lower House speaker. The report states that since lawmakers reach agreements on most bills in closed- door committee meetings, the details are already thrashed out before the bill is tabled in the parliament. This was making the final debate essentially perfunctory and unhealthy, and just intended towards removing resistance from opposition parties alone. The other details in the report include considering a law on political ethics, new systems to penalize corrupt lawmakers and scrapping the review of bills by the Diet Committees before they are tabled on the Diet floor. The panel has proposed easing of the practice by parties, of binding law makers to vote in a certain way, extending Diet sessions to cope with international and domestic changes, unification of the Upper and Lower houses, paying lawmakers on pro-rata basis and scrapping of privileges accorded to long serving members. The recommendations are to be debated further at a Lower House Panel and are expected to face fierce opposition. (The Japan Times, November 20, 2001, summary by Aruna Balakrishnan).
CONSTRUCTION BUREAU GOVERNMENT OFFICE RAIDED IN A BRIBERY CASE INVESTIGATION. . Police raided the Construction bureau of the Tokyo Metropolitan Government Building on Monday to look for documents to prove the bribery charges against which an official of this bureau was arrested. Susumu Hara, who was in charge of drafting erosion control measures for the Miyake Island, is said to have accepted 3 million yen as payoffs on three occasions from Kyosei Kiko, the construction company which had been employed for repairs on Miyake Island. Kyosei Kiko had supplied more than 400 million yen worth of construction material to the metropolitan government for this project. Yoshio Takatsuji, director of Kyosei Kiko was also arrested for having tendered the bribe. Both men have accepted the allegations against them and Hara has been quoted as having received the money since he had personal debts for over 10 million yen to be paid back. . . (The Japan Times, November 13, 2001, summary by Aruna Balakrishnan).
TWO JAPANESE OFFICIALS PLEAD GUILTY IN A CONTINUING SERIES OF HIGH PROFILE EMBEZZLEMENT SCANDALS. The latest to be nabbed in the series of scandals involving the foreign ministry are two officials- Hiromu Kobayashi, former assistant director of the ministry of Economic Affairs Bureau and his subordinate Tsutomu Okuma. They were dismissed in August and have pleaded guilty of the charges against them. They have been accused of swindling $175,000 by filing for expense accounts for an inflated number of limousines employed at last year’s G8 summit at Okinawa. Two officials from the car rental firm, which supplies cars to the Japanese Government regularly, have also been dismissed. (BBC, November 6, 2001, summary by Aruna Balakrishnan).
POSTAL ASSOCIATION OF TOHOKU LINKED TO 350 MN YEN SCAM. An association comprising chiefs of the post offices in six areas of Tohoku have been charged with misappropriation of postal promotional funds, by the country’s ministry of posts, The Postal Services Agency. The Agency allocates funds to every post office for activities related to improving the services and provides additional funds for promotional purposes. It is alleged that the association supervising operations in the Tohoku region instructed chiefs of 25 post offices in the region to contribute upto 20% of the promotional funds to a separate organisation linked to the association. This amounted to a total of 50mn yen annually, and 350mn totally since the scam started in early 1994. The postal chiefs diverted the money by padding the bills on purchase of items for promotional purposes. The money is said to have been used to purchase tickets of fundraisers for politicians who were ministry officials and other unofficial political meetings. The Agency has ordered a probe into the scam. (Daily Yomuiri, October 25, 2001, summary by Aruna Balakrishnan).
FUJIMORI GUILTY OF CORRUPTION AND HUMAN RIGHTS VIOLATION -JAPAN ADMITS. At the 9th APEC Summit, Japanese Prime Minister, Junichiro Koizumi has admitted to his Peruvian counterpart, Alejandro Toledo, that former Peruvian President currently a citizen of Japan, Alberto Fujimori, was guilty of corruption and human rights violation. Koizumi has assured that Fujimori would be tried in Japan for the charges and that two premiers would update each other on the proceedings via a dedicated telephone line. Peruvian Prime Minister Roberto Danino has expressed relief in this admission, as it would ensure that Fujimori will no longer enjoy the complete immunity that he had so far, but expressed his concern that Fujimori should be tried in Peru under Peruvian laws since the crimes he committed pertain to his tenure there as President.(People’s Daily Online, October 23, 2001, summary by Aruna Balakrishnan).
JUDGE QUESTIONS FUJIMORI. A Japanese judge has questioned the former president of Peru, Alberto Fujimori, over the corruption scandals that forced him to step down last year and to leave Peru. The interview was carried out at the request of the Peruvian authorities. The Japanese authorities have repeatedly refused to extradite him because he is a Japanese citizen. The Government of Peru responded by issuing an international arrest warrant for Mr Fujimori. Thus, it exercises pressure to Japan to hand him over for trial. (Source: BBC News Com, September 19, 2001, summary by Pavlidis George). GUILTY EX-CONSTRUCTION
EXECS AVOID PRISON. The Osaka
District Court sentenced Katsumi Yama, 58, former deputy director of a
construction office, to two years in prison, suspended for fours years.
Also sentenced, Yukihiko Namekata, 49, former construction company head, to
18 months in prison, suspended for three years.(Mainichi Daily News, August
10, 2001, summary by Barbara Gray). Tokyo, JAPAN NATURALIZES VICTOR ARITOMI. Victor Aritomi,
former ambassador
to
Tokyo and the brother-in-law of the former Peruvian President Alberto Fujimori,
has been granted the Japanese citizenship. This development increases
the chances that he won't be sent to Lima to face corruption charges.
Peruvian prosecutors believe that Victor Aritomi was present in an illegal
money transfer ($15 million) by Fujimori to former spy chief Vladimiro
Montesinos. Officials of the Peruvian embassy in Tokyo said Lima has
already issued an international arrest warrant against Aritomi. According
to the Justice Ministry of Peru, Japan also granted nationality to a
woman named Rosa Aritomi, who the embassy of Peru in Tokyo identified as Aritomi's
wife and Fujimori's sister. (Source: Associated Press, July 18, 2001,
summary by Pavlidis George). JAPAN ACCUSED OF
VOTE-BUYING IN CARIBBEAN TO DEFEAT WHALE SANCTUARY. Environmentalists in
Dominica accused Japan of using economic aid to buy the Caribbean nation's
vote against a whale sanctuary in the South Pacific. This happened
after Dominica Prime Minister Pierre Charles announced negotiations with
Japanese officials for help in building new multimillion-dollar fishing
facilities. Environmentalists say this happening before the
meeting of the International Whaling Commission in London suggest Japan is
using money to persuade Dominica to vote against the proposed South Pacific
Whale Sanctuary. (AP Worldstream, July 3, 2001, summary by Barbara Gray).
14 CONTRACTORS PUNISHED IN SUBNCONTRACTING SCHEME The central land ministry and the Tottori prefectural governments have ordered fourteen contractors to suspend operations for 10 to 22 days due to their involvement in illegal subcontracting in a public works project. The law prevents subcontracting of entire public works contracts, however, the contractors stated they did send senior engineers to the site. The contractors were awarded the contract for 501 million yen and subcontracted the core part of the project for 330 million yen. (AOL News (Kyodo), June 1, 2001, summary by Marg Reynolds).
CORRUPT OSAKA POLITICIANS A DISGRACE Susumu Okada, former Chairman of the Osaka Prefecture Assembly, was arrested on allegations he received several million yen from a construction company in return for information on bid pricing to construct a government housing complex. A major newspaper, the Yomiuri Shimbun, often receives anonymous bid-fixing information and often knows the results of a contract competition before its closing. The Osaka prefectural government has initiated measures to prevent re-occurrence of the scandal and the municipal government will introduce similar measures next month. (Daily Yomiuri, May 10, 2001, summary by Marg Reynolds).
MAYOR ARRESTED FOR ARRANGING BRIBES Yoshiro Sakai, major of Handa, Aichi Prefecture, was arrested on suspicion of having Rinsui Mizuno, construction firm managing director, pay 2 million yen to Sakai’s son. Police say the money-for-favors deal was in connection with a city-run housing project. (Japan Today (Kyodo), May 1, 2001, summary by Marg Reynolds).
FOREIGN MINISTER ON EMBEZZLEMENT SCANDAL Makiko Tanaka, Foreign Minister, stated further punishment is required for officials who abuse secret government funds and also included senior officials who fail to prevent the abuse. On another topic, Ms. Tanaka stated Japan and South Korea should work together to return North Korea to the international community. (NHK Newswatch, Apr 27, 2001, summary by Marg Reynolds).
VILLAGE OFFICIAL ADMITS DEFRAUDING BANKS OF 350 MILLION YEN IN LOAN SCAM Tadao Iwasaki, former treasurer of Tosayamamura Village, Kochi Prefecture, admitted charges of fraud and forgery of public documents in the amount of 350 million yen. He allegedly used the personal seal of Hirofumi Kadota, Tosayamamura mayor, to obtain fraudulent bank loans to fund bets on bicycle races. (The Daily Yomiuri, Apr 25, 2001, summary by Marg Reynolds).
POLICE SET TO SERVE NEW ARREST WARRANT ON FORMER OFFICIAL. Katsutoshi Matsuo, former logistics chief in the Foreign Ministry, is being investigated for a second case of fraud involving padding expense bills and swindling the Cabinet Secretariat’s discretionary funds for diplomatic activities. Matsuo was previously arrested March 10 for allegedly defrauding 42 million yen from official trips he handled. He arranged 46 tours for Prime Ministers Ryutaro Hashimoto, Keizo Obuchi, Morihiro Hosokawa, Tsutomu Hata and Tomiichi Murayama between November 1993 and July 1999. An internal probe revealed he stole more than 54 million yen between October 1997 and March 1999, after which he was dismissed. (AOL News (Kyodo-AP), Mar. 26, 2001, summary by Marg Reynolds).
PERUVIANS
CALL ON FUJIMORI TO LEAVE JAPAN A rally of an estimated 400 Peruvians living
in Japan recently have demanded disgraced former President, Alberto Fujimori
be returned to Peru and be forced to face charges of dereliction of duty,
human rights abuses, and illicit acquisition of funds. Fujimori denied these claims and does not
believe Peruvian authorities would give him a fair trial. (Asahi News, Mar. 13, 2001, summary by
Marg Reynolds). FORMER
LAWMAKER ARRESTED ON BRIBERY CHARGES
Masakuni Murakami, former lawmaker and former member of the House of
Councillors was arrested on suspicion of taking a bribe of 73 million yen
from the KSD Foundation for Promoting Welfare of Independent Entrepreneurs in
1996. Then-President of KSD, Tadao
Koseki, asked Murikami to actively promote establishment of the Institute of
Technologies during Diet interpellations.
Then-Prime Minister, Ryutaro Hashimoto, gave a positive response to
Murikami's suggestions and Hosein, a KSD affiliate was selected for
construction. The organization paid
Muakami 23 million yen for office rent for two years and 50 million yen in cash. This marks the first time Party Representative’s
posed questions become subject to charges of bribe-taking. (Yomiuri Shimbun, Mar. 2, 2001, summary
by Marg Reynolds). GOVERNMENT
REFUSES TO HAND OVER FUJIMORI
Justice Minister, Masahiko Komura, has stated his government will not
extradite the disgraced former President of Peru, Alberto Fujimori, as he has
dual Peruvian-Japanese nationality and has not committed a crime on Japanese
soil. The Peruvian Supreme Court is
planning to send an envoy to Japan with an arrest warrant for Alberto
Fujimori to answer to the charge of dereliction of duty. (BBC World Service, Mar. 2, 2001,
summary by Marg Reynolds). MINISTER
SAYS FUJIMORI WON’T BE EXTRADITED
Peru’s Attorney General charged former President, Alberto Fujimori
with abandonment of office and dereliction of duty after Fujimori fled to
Japan and faxed his resignation from Tokyo to the Peruvian Congress in
November. Japan and Peru have no
extradition treaty and Fujimori has denied illicit involvement with Vladimiro
Montestinos, formerly his advisor and intelligence chief. (DJ Newswires, Mar. 2, 2001, summary by
Marg Reynolds). PRIME
MINISTER MAY RESIGN AMIDST SCANDAL
Liberal Democratic Party Secretary General, Makoto Koga, together with
an increasing number of LDP lawmakers, may cause the early resignation of
Prime Minister Yoshiro Mori or the bringing forward of the LDP presidential
election. Takenori Kanzaki, leader of
the LDP’s coalition partner, New Komeito, also stated that Yoshiro Mori, as
LDP Party President, has some responsibility for the recent scandal in which
the high-ranking former LDP lawmaker, Masakuni Murakami, was arrested for
receiving bribes of 73 million yen in bribes from the KSD Foundation for
Promoting Welfare of Independent Entrepreneurs. (Yomiuri Shimbun, Mar. 2, 2001, summary by Marg Reynolds). PRIME
MINISTER MORI APOLOGIZES FOR CORRUPTION IN CABINET, BUT FACES NO CONFIDENCE
VOTE Officials have arrested
Masakuni Murakani, former labour minister in the Liberal Democratic Party on charges
of accepting bribes of $615,000 U.S. from KSD, a scandal-tainted
foundation. Political opponents plan
to submit a no-confidence motion against Prime Minister Yoshiro Mori as he is
the party president. The motion will
be filed on Friday, when the Lower House passes the budget for this fiscal
year. (CNN, Mar. 1, 2001, summary
by Marg Reynolds). EX-LAWMAKER FOUND GUILTY OF FRAUD, GETS JAIL TERM Joji Yamamoto, former lawmaker and former member of the main opposition Democratic Party of Japan, was sentenced by the Tokyo District Court to one and a half years in prison for fraudulent use of public funds in the amount of 25.5 million yen. Although he resigned from his position and reimbursed all funds, presiding Judge Wataru Nemoto stated Joji Yamamoto had a dull sense of ethics and moral conduct as he committed the crime without hesitation and therefore deserved the jail term. (Kyodo News, Feb. 28, 2001, summary by Marg Reynolds). TOKYO. Yoshiro
Mori, Japan's prime minister apologized for a spate of corruption scandals
that have undermined his 10-month administration. Corruption has become
an issue for voters following the scandals, which included a cash-for-favors
bribery affair that forced the resignation of Fukushior Nukaga, the economics
minister. Mori's
corruption-tainted administration struggles to divert attention away from the
scandals as Japan's four opposition parties have vowed to make them the
central theme in the new parliament. (Financial Times, January 31, 2001,
summary by B. Gray). Tokyo, SCANDAL SINKS THIRD JAPANESE MINISTER. Mr.
Fukushiro Nukaga, the
Economics
Minister of Japan resigned yesterday after being accused of corruption.
Four opposition parties are determined to pursue the ruling Liberal
Democratic Party over its knowledge of a political slush fund operated
by a semi-public foundation (Mr. Nukaga's political office allegedly
received $A232, 000 from this fund in 1999 and 2000). Prime Minister,
Yoshiro Mori, who is criticized for having failed to screen appointees
for tainted backgrounds, has now to deal with the third cabinet minister
to resign in disgrace since last April. (Source: The Age-Australia, January
24, 2001, summary by Pavlidis George). Tokyo. OFFICIAL STEPS DOWN. Fukushiro Nukaga, the cabinet officer for economic and fiscal planning stepped down. He said that his secretary accepted 15 million Yen ($128,000) from a business association in 1999 but quickly returned it. He had previously stepped down as the director general of a defense agency in a procurement scandal where he was not implicated. (NY Times, Jan. 23, 2001, p.W1).
Tokyo, FORMER JAPANESE LAWMAKER HANGS SELF. Yojiro Nakajima, 41, was a former lawmaker who had been convicted of vote buying and taking bribes. Last Saturday, Yojiro Nakajima hanged himself at his home to avoid further disgrace. In 1996, Nakajima was accused of taking $46,800 in bribes from Fuji Heavy Industries Ltd. to help the company win a contract for an amphibious search-and-rescue aircraft. He pleaded guilty to the charges and the Tokyo High Court sentenced him to two years in prison. Suicide is not an uncommon pattern in similar cases. Last year, for example, two top executives of Sogo, a department store that went bankrupt, committed suicide; in May 1999, two executives from a major bank hanged themselves over an alleged cover-up of bad loans. (Source: Associated Press, January 10, 2001, summary by Pavlidis George). FUJIMORI
VOWS NEW PROGRAM FOR PERU WHEN CLEARED.Alberto Fujimori, former President of
Peru, has announced that he plans to undertake anew a political program when
the innumerable accusations against him for corruption are proved
groundless. Officials in Peru are
investigating a string of international bank accounts of Fujimori’s former
spy master, Vladimiro Montesinos, mostly from illicit arms deals and money
laundering. Fujimori denies he came
to Tokyo with more than $18 million from the sale of shares. Fujimori cannot be extradited to Peru if
the Peruvian government brings corruption charges against him as he is a
Japanese national, allowing him indefinite stay in Japan. (NYT, Dec. 26, 2000, summary by Marg
Reynolds). LOCAL
GOVERNMENT CORRUPTION HITS NEW HIGH. One hundred and sixty seven government
workers, town mayors and assembly members were involved in corruption in
fiscal 1999 with volume types ranging as follows: embezzlement, bribery, official document forgery and
swindling. (NHK Japan Broadcasting
Corporation, Dec. 24, 2000, summary by Marg Reynolds).
Yoshiro Mori’s embattled administration is once again under fire. A key economic minister, General Fukoshiro Nukaga, has reportedly accepted 15 million yen from Tadao Koseki, the ex-president of insurance provider KSD. The bribe was given on two occasions to secure support for a project. However Nukaga denied first-hand knowledge of the bribe, and claimed to have returned the money several days later. (Channel News Asia, 31 December 2000, summary by Lu C. L.).
LOWER HOUSE PASSES
ANTI-CORRUPTION BILL. An anti-corruption bill aimed at stopping influence-peddling
by politicians has been passed by Japan's powerful Lower House of parliament.
Under the new law, politicans who are found guilty of influencing civil
servants on behalf of a third party for financial gain can no longer run for
office. However, according to opposition parties, the bill has loopholes that
would allow politicians to still use influence for financial gain. The new
restriction applies only to official secretaries who are paid salary by the
government. But most lawmakers have private secretaries aside from two
official assistants. (AltaVista News (Reuters), 10 November 2000, summary by
Debbie Uy). BUREAUCRAT LOSES APPEAL OF
CONVICTION FOR BRIBERY. The Tokyo High Court upheld a lower court ruling
sentencing former Vice Health and Welfare Minister Nobuharu Okamitsu to two
years in prison on November 10. Okamitsu, 61, was sentenced for receiving
about 60 million yen in bribes from a nursing home operator. Okamitsu had
appealed to the court, saying that the money he accepted from Hiroshi Koyama,
former head of Aya Welfare Group, was a loan. Koyama, 55, was sentenced to 18
months in prison, a decision also upheld by the high court. Koyama claimed
that he gave the money to Okamitsu but did not ask him for a specific favor.
Okamitsu was fined nearly 64 million yen and Koyama, 2 million yen by the
district court. In his ruling, Judge Tomoo Araki said that Okamitsu acted
counter to his duties and is responsible for the public's loss of trust in
government employees. (Japan Times, 11 November 2000, summary by Debbie Uy). Yokohama,
FORMER DIET MEMBER PLEADS GUILTY TO ELECTION GRAFT. Tadayoshi Iijima, 55, is
a former House of Representatives lawmaker.
On Wednesday, Mr. Iijima pleaded guilty at the Yokohama District Court
to charges of corruption. He was accused that after the June 25 general
election he offered gift certificates to 24 supporters of his. The
certificates were given as a token of thanks for collecting votes for him
when he was running for the No. 4 single-seat constituency in Kanagawa
Prefecture. (Source: Kyodo, November 22, 2000, summary by Pavlidis George).
TOKYO - Takeshi
Kashiwagi, a Japanese independence
activist and corruption fighter in East Timor, has been freed after being
arrested for supposedly threatening to kill
East Timorese Leader Xanana Gusmao. Kashiwagi claims charges are
unfounded, and that he was arrested because he had accused "strong
forces” within the main Timorese national coalition of being in collusion
with foreign interests. (Asahi
Evening News, October 26,2000. Summary Fabian Camacho). EFFORTS TO PASS ANTI-BRIBE BILL.
The Prime Minister of Japan, Yoshiro Mori, hopes that the anticorruption bill
submitted by the three ruling parties will pass and enter into force. The
bill's scope is to prevent lawmakers from abusing their positions in order to
solicit bribes. In a speech at the House of Representatives, Mori said:
"In drawing up the bill, I have stressed that the role of politics,
which is to reflect the people's wishes in administrative policies, should be
fully considered while making clear which actions could constitute crimes. I
hope that the ruling coalition's bill, which is based on these ideas, will be
enacted in the current Diet session."
(Source: Daily Yomiuri, September 25, 2000, Summary by Pavlidis
George). ECONOMISTS PUSH
FOR TRANSPARENCY A group of economists and finance professionals from the
private sector will today launch what it has termed a "financial
NPO" aimed at issuing opinions and recommendations on the nation’s
financial system. The establishment of the Council for Financial Innovation
is intended to create a nonprofit organization that will promote transparency
in the financial system and push free and fair financial markets in Japan,
members said. The council will
establish a forum on the World Wide Web by the end of September so that
members can post and exchange opinions on such controversial issues as
regulation of IT-related businesses and their accountability to financial
authorities. The group will end its activities by 2005, the time by which it
believes Japan´s transition to a new financial system should be complete.
Practical recommendations on two or three issues are expected to be issued by
the end of this year. The Japan Times, September 1, 2000 http://www.japantimes.co.jp/ POLICE THANK HONG KONG CORRUPTION
COMMISSION FOR HELP A visiting delegation of Japanese police on Monday
thanked Hong Kong´s anti-graft agency for its assistance in smashing a fake
credit card ring in Tokyo last year. The Tokyo Metropolitan Police
Department, acting on intelligence provided by Hong Kong´s Independent
Commission Against Corruption (ICAC), crushed a Tokyo-based counterfeit
credit card syndicate using Hong Kong criminals to supply credit card data.
Tokyo police arrested five people, including one from Hong Kong believed to
be the syndicate´s head, during its raid on a counterfeit card factory Nov.
11 last year, the ICAC said in a statement. More than 1,000 sets of genuine
credit card data, over 300 blank plastic cards used for making false credit
cards, computer equipment and other tools for manufacturing counterfeit cards
were also seized. The Hong Kong man, Chan Man-fat, was subsequently sentenced
to two years and eight months in jail for credit card fraud offenses by the
Tokyo District Court Card issuing banks in Hong Kong reported losses of more
than HK$185,500 (about US$24,000) in the case. After receiving a citation
from the Japanese delegation Monday, Gilbert Chan, ICAC acting director of
investigations for the private sector, said mutual assistance between law
enforcement agencies in various jurisdictions has become increasingly
important due to the globalization of crime. AOL News (Kyodo), Sept. 4, 2000 http://www.aol.com TOP LEGISLATOR ARRESTED FOR FRAUD Japanese
prosecutors on Monday arrested a legislator close to the second-highest
official of the nation´s leading opposition party for allegedly misusing more
than $185,615, Japanese media reported. Joji Yamamoto, 37, a close aide to
Democratic Party policy chief Naoto Kan, used part of the salary provided by
the government for one of his staff to pay his office rent and finance his
political activities, Kyodo news agency said. Shortly before his arrest,
Yamamoto resigned as a Democratic Party member to minimise possible damage to
the nation´s biggest opposition party. Yamamoto was first elected to the
Lower House of parliament in October 1996. The Democratic Party said it was
considering whether to urge Yamamoto to resign from parliament. AOL News (Reuters),
Sept. 4, 2000 http://www.aol.com A NTT Cellular
company (nicknamed DoCoMo) stock acquisition by the political secretary of
Prime Minister Keizo Obuchi skyrocketed in value from $55,000 to $64
million. Secret stock deals are
alleged to be a new form of corruption.
No proof is available linking it with the Prime Minister. (NYT Feb,
20, 2000, p.16). Police are a
“shame and an embarrassment” for all of Japan according to a recent poll and
corruption scandals include extortion based on semi-nude photographs of a
female officer in Kangawa. Kyoto
scandal involves botched investigation of Toshiki, age 7, by a man with a
kitchen knife. (NYT, March 7, 2000, p. A3). Former President of Yamachi Securities,
Atsuo Miki, received a 2-year sentence for hiding losses and bribing
racketeers linked to Japanese mob. Tsugio Yukihara, the former chairman of
the firm also received the same sentence, but it was suspended for five
years. (NYT, Mar 29, 2K, p. C4). FUKOKA, The G-7 and other major
industrialized nations have resolved to tackle international money laundering
within national banking systems. Some 15 nations are being investigated under
threat of sanction for their perceived failure to tackle money laundering
within their systems adequately. (WSJ, July 10, 2000, summary by Desmond
Fitzgerald) Japan: Marubeni unit tied to Suharto
embezzlement case (The Japan Times, 23.8.00,
http://www.japantimes.co.jp/cgi-bin/getarticle.pl5? Chief cabinet
secretary admitted having accepted donations (Far Eastern Economic Review,
17.8.00,http://www.feer.com/_0008_17/p14.html JAPAN: FINANCE RENEWAL HEAD RESIGNS AMIDST
SCANDAL The head of the agency charged with overhauling Japan´s faltering
financial system resigned today in the face of a fast-growing scandal over
his relationship with one of Japan´s largest financial institutions. Kimitaka
Kuze, the chairman of the government´s Financial Reconstruction Agency,
submitted his resignation this afternoon. "I decided to resign because I
thought my personal problems might disrupt parliamentary deliberations,"
Mr. Kuze said at a news conference. "This is a time when the government
is facing important domestic and foreign relations issues, and I wanted to
ensure there were no misunderstandings about the financial
administration." Mr. Kuze acknowledged on Friday that he received 230
million yen, or $2.1 million at current exchange rates, in cash and benefits
from the Mitsubishi Trust & Banking Corporation for advisory work he did
over 13 years that ended in 1996. He refused to resign then, contending that
he did nothing illegal under the laws at the time, a contention he continued
to maintain tonight. However, his critics in the opposition party, which is
gaining strength at the expense of the long-ruling Liberal Democratic Party,
insisted that the payments were a bribe from the industry Mr. Kuze was
charged with overseeing. And Mitsubishi Trust issued a statement saying it
had indeed hired him for his political connections, among other things. Reports on Saturday that Mr. Kuze had
accepted 100 million yen, or $920,000, from a condominium developer only
further fueled doubts about his ability to serve as the head of the agency.
More and more companies are seeking debt waivers, a trend that may mean that the
government ends up holding the fate of several debt-laden real estate and
construction companies in its hands. He was the second head of the agency to
resign under a cloud this year, and his departure is likely to raise further
doubts about the government´s ability and commitment to restructuring the
financial system, which two years ago was poised to collapse. Michio Ochi was
forced to step down in February after he made remarks suggesting that he
would water down bank inspections. New York Times, July 31, 2000
http://www.nyt.com JAPAN: EX-MINISTER AGAIN INDICTED FOR
ACCEPTING BRIBE Former Construction Minister Eiichi Nakao, previously
indicted for accepting bribes involving public works projects, was slapped
with a new indictment Thursday as Tokyo Public Prosecutors accused him of
accepting 30 million yen from Wakachiku Construction Co. in a similar
incident. Nakao, 70, is said to have admitted accepting a total of 60 million
yen. In indicting Nakao again, however, prosecutors released art dealer Kunio
Fukumoto, 73, deciding that his role in the bribery scandal was not
significant enough to prosecute. He had been arrested as an accomplice in the
incidents. Nakao is said to have accepted bribe money from Hiroshi Ishibashi,
then chairman of Wakachiku Construction, three times between June and
September 1996, according to the indictment. Nakao got 10 million yen each
time, either directly, or through his secretary, Kenichi Kitamura, 41, who
was also released after being arrested in the bribery probe. The money was
sometimes presented in the construction minister´s office, the indictment
asserts. Investigators say they believe Nakao got 20 million yen from
Ishibashi in May 1996 during a party at a ryotei restaurant in Tokyo´s
Mukojima area to celebrate Nakao´s appointment as construction minister. But the prosecutors could find no specific
request from Ishibashi for favors that would justify a bribery count for that
transaction. The money is said to have been used for Nakao´s October 1996
Lower House election campaign as well as a bid by his son, Kenichi Mizuno,
34, for office. Wakachiku first
approached Nakao around June 1996 to help improve the company´s chances of
winning public works bids from the Construction Ministry, the indictment
claims. The company also wanted to hire a retired construction ministry
bureaucrat to ease access to bid information. (Asahi Shimbun, August 11,
2000).
http://www.asahi.com/english/asahi/0811/asahi081105.html The OECD anti-Corruption report for Japan can be found at http://www.oecd.org/daf/nocorruption/report.htm
The Index of Economic Freedom (by Driscoll-Holmes-Kirkpatrick) for 2001 places Japan in the “Mostly Free” category with a rank of 18 (Ranks range from 1 for Hong Kong to 155 for North Korea, Wall Street Journal, Nov. 1, 2000). H. D. Vinod’s trimmed correlation analysis indicates that countries free from economic regulation are less corrupt. After allowing for some exceptions by 20% trimming, the correlation is near 0.9. |
|
||
|
Design:
Theo den Brinker |
Copyright:
Hrishikesh D. Vinod 2000 |
Last
Updated: |
|
