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October 17, 2014

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Japan trade minister apologizes for misuse of funds

In a blow to Prime Minister Shinzo Abe, his newly appointed trade minister was ensnared in controversy yesterday after reports that her political funds were spent buying theater tickets for supporters and goods from relatives’ businesses.

Abe picked Yuko Obuchi, the 40-year-old daughter of a former prime minister, to head the powerful ministry of economy, trade and industry (METI) in a cabinet reshuffle in early September. She was among five women given top jobs, as Abe sought to bolster his government’s popularity with voters.

Regarded as a possible future contender to become Japan’s first woman premier, Obuchi apologized at a parliamentary panel for the controversy after the reports of misuse of funds, possibly violating electoral and political funding laws, hit the newsstands yesterday.

“I apologize from the bottom of my heart for the fuss created by my private matter,” Obuchi said in response to questions at a panel in the upper house of parliament.

The weekly magazine Shukan Shincho reported that two political support groups in Obuchi’s constituency had spent some 26 million yen (US$245,600) on theater tickets for her backers in 2010 and 2011.

The Mainichi newspaper said Obuchi’s political funding oversight body had spent about 3.6 million yen over five years from 2008 at a clothing shop run by her sister’s husband and a design office run by her sister, raising more questions.

Obuchi said she believed the payments to her sister’s shop fell within the scope of political activities but that further checks would be made.

After her appointment, Obuchi was given the tough task of trying to gain public trust for the government’s unpopular policy of restarting nuclear reactors following the 2011 Fukushima atomic disaster.

Abe had hoped the telegenic mother of two would be able to ease opposition, but the controversy around her could hinder the governments plan for restarting the reactors.

“If this damages Obuchi, the ‘Obuchi effect’ will disappear. The hurdle for restarts will get higher,” said independent political analyst Atsuo Ito. “I don’t think she will have to resign. But for sure, this is damaging to Abe’s image,” Ito added.




 

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