Recruit Scandal Jolts Japan Opposition

Japan’s opposition Clean Government Party emerged Wednesday as the latest casualty in a bribery case that has thrown the government into confusion, with its chairman becoming the third political party leader to say he will resign because of the scandal.

Junya Yano, chairman of the Buddhist-affiliated Komeito, or Clean Government Party, declared his intention to resign hours after prosecutors questioned Katsuya Ikeda, a Komeito member of Parliament, on suspicion of peddling influence to Recruit Co., the employment services firm at the center of the scandal.

The Tokyo District Public Prosecutor’s Office also interrogated Takeo Fujinami, a member of Parliament belonging to the ruling Liberal Democratic Party, prompting speculation that the criminal investigation is about to climax with the indictment of the two politicians. So far, 14 businessmen and bureaucrats have been arrested on charges of bribery and securities violations in the case.

The developments Wednesday removed some of the pressure on the Liberal Democrats, who have borne the brunt of public condemnation for unethical fund-raising practices that have been laid bare by the scandal.

Prime Minister Noboru Takeshita announced April 25 that he would soon resign as prime minister and as head of the ruling party to take responsibility for his ties to Recruit stock transactions and political contributions.

Nearly the entire leadership of the ruling party has been tainted by the scandal, leaving power brokers without a suitable successor and casting doubt on whether Takeshita will immediately carry out his promise to resign once the new budget goes into law at the end of the month.

Saburo Tsukamoto, chairman of the Democratic Socialist Party, resigned in February because of his ties to Recruit. Yano’s Komeito is the second-largest opposition group, after the Japan Socialist Party.

Implicated in Similar Case

Yano himself is not accused of involvement in the Recruit affair, but he has been implicated in a similar though unrelated case of questionable trading in shares of an electronics firm, Meidenko Co. He did not mention that case in announcing his resignation but said he was taking responsibility for the actions of Komeito lawmaker Ikeda and of a party member in the upper house who was arrested in yet another bribery scandal last year.

Yano said he was quitting “to pave the way for Komeito to make a fresh start.”

Ikeda announced Tuesday that he would resign his seat in the lower house for “causing trouble” to his party but denied allegations that he had provided favors to Recruit in exchange for stock profits and political donations.

Former chief Cabinet secretary Fujinami, the second politician reportedly facing indictment for selling influence to Recruit, has said he will resign from the ruling party, but it was not clear Wednesday whether he too would give up his seat in Parliament.

Ordinarily, prosecutors would not formally interrogate suspects without first arresting them, but Japan’s constitution forbids the arrest of members of Parliament while the body is in session, as it is currently. Wednesday’s action by investigators was described by the Japanese media as the precursor to certain indictment of the two men without physical detention.

Former Prime Minister Yasuhiro Nakasone said this week that he is willing to testify in Parliament about his role in the Recruit scandal. Officials of his party said he will not testify until the investigation is completed. The Justice Ministry said that will be soon.