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Shinzo Abe in Political Donation Scandal

© REUTERS / Yuya ShinoJapan's Prime Minister Shinzo Abe speaks during a year end meeting at Japan Business Federation (Keidanren) in Tokyo December 25, 2014
Japan's Prime Minister Shinzo Abe speaks during a year end meeting at Japan Business Federation (Keidanren) in Tokyo December 25, 2014 - Sputnik International
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A local branch of the Japanese Prime Minister's Liberal Democratic Party has disclosed its receipt of donations from companies which received subsidies from the government.

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The local constituency branch of Shinzo Abe's Liberal Democratic Party [LDP] has disclosed that it took political donations from companies in exchange for subsidies from the government, making the Japanese Prime Minister the latest government politician to be hit by questions over his political funding.

 

Political funds reports seen by Kyodo News show that in 2012 and 2013, the LDP organization in the fourth district of Yamaguchi Prefecture, represented by Abe, received donations of ¥120,000 [$1,000] in 2012 from a chemical product company based in Osaka, and ¥500,000 [$4,200] in 2013 from Ube Industries Ltd. in Tokyo.

 

A subsidy of around ¥1 million ($8,350) was reportedly approved for the Osaka-based chemical company in June 2012, and in April 2013 around ¥33 million ($276,000) was earmarked for Ube Industries to develop energy-saving technology in the cement manufacturing industry.

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According to the Japanese Political Funds Control Law, which was reformed in the early 1990s after a series of political corruption scandals, a company is banned from making political donations for a year after receiving a notification of the government’s decision to grant it a subsidy, a measure intended to prevent corporations from bribing politicians.

 

"According to the prime minister, it is true that [the chapter] received donations, but [Abe] was not aware that the companies concerned received subsidies," Kyodo reports Chief Cabinet Secretary Yoshihide Suga told a press conference on Monday, adding that Abe "said he will check the facts. I believe that once he finishes checking, he will handle the issue appropriately."

 

Last week the Japanese Agriculture, Forestry and Fisheries Minister Koya Nishikawa resigned over similar allegations, after it was revealed that his local party branch received 1 million yen ($8,400) from a company in the sugar refining industry that had received government subsidies. At the time of his resignation, Nishikawa was taking part in the Trans Pacific Partnership negotiations, a proposed multinational free trade agreement between 12 governments of the Pacific region, including the US, Japan, Australia and Chile.

 

In October of last year, one member of Abe's Cabinet was accused of violating election campaign laws and four of financial irregularities; Trade and Industry Minister Yuko Obuchi and Justice Minister, Midori Matsushima were forced to resign. "I'm the person who appointed the two," Abe told reporters in October. "As prime minister, I take responsibility for this and deeply apologize for this situation." 


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