National News

Tanaka denies misappropriation of funds despite continued suspicion

Former Foreign Minister Makiko Tanaka on July 24 categorically denied allegations she misappropriated the state-paid salaries of her secretaries.

Tanaka was speaking during a two-hour session of the House of Representatives Deliberative Council on Political Ethics.

"I want to make it clear that I have not done anything (as alleged in media reports)," Tanaka said in her opening statement. "Since I entrusted the family firm with the financial affairs of my secretaries, I had nothing to do with it."

However, she admitted that part of her secretaries' salaries for several months in 1998 were not settled by Echigo Kotsu Co. due to clerical errors. She said her support organization made up the payments in early July.

Echigo Kotsu, based in Nagaoka, Niigata Prefecture, is a bus operator that the Tanaka family runs.

The council was also shown evidence that suggested Tanaka diverted the salaries of secretaries to pay her private aides in June 1996, and possibly did the same on other occasions.

Tanaka said the government-paid salaries of her secretaries were first delivered to Echigo Kotsu in unopened envelopes, adding the company properly dealt with the money by paying the secretaries.

Echigo Kotsu officials pooled the remaining amount, which was appropriated for various allowances at the end of the fiscal year, she said, stressing the bus company did not shoulder her secretaries' salaries.

According to Tanaka, the secretaries wanted to be sent on loan from Echigo Kotsu, as they otherwise risked losing their jobs if Tanaka was not re-elected.

Prime Minister Junichiro Koizumi said: "I only listened to part of the testimony, but I am under the impression that the suspicion still remains. She needs to behave sincerely to clear the air."

Shukan ST: Aug. 2, 2002

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