Japan economy minister to quit over graft allegations

Embattled economic and fiscal policy minister Akira Amari said Thursday he will quit his post after an investigation found his secretary had failed to handle cash received from a construction company appropriately.

Mr Amari on Thursday acknowledged personally receiving a total of Y1 million ($US8,400) on two occasions from a person at the company but said the money was handled properly.

Amari is the most influential minister to resign since Prime Minister Shinzo Abe took office in December 2012.

He was also the key mover behind a giant trade deal called the Trans-Pacific Partnership, which he was due to sign in New Zealand next month.

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“Japan is finally emerging from deflation”, Amari said, according to Japan Times, adding: “We need to pass legislation through parliament for steps to beat deflation and create a strong economy as soon as possible”. “I’d like him to use his full capacity to pull Japan out of deflation and put its economy on a growth path”, Abe told reporters. The loss of Mr Amari may also prove a headache for Mr Abe in the run-up to elections in parliament’s upper house this summer.

A tearful Amari apologized for the scandal, saying it had caused embarrassment.

Japanese Communist Party’s secretariat Yoshiki Yamashita said that Amari definitely remembers meeting officials from the construction company in his office, but his claims that his memory is vague about whether he received cash. “I will continue to give my all to fulfil the responsibilities that I now have”.

He has said he did receive money which he wanted declared as a political donation, but that some of it was mishandled by his staff.

Amari is the fourth member of Abe’s cabinet to resign amid allegations of bribery, among other issues.

Reports suggest that a large part of the money received went unrecorded in Amari’s political funds report.

“This is possibly the biggest scandal the Abe administration has faced”, said the BBC’s Mariko Oi.

“Amari is investigating the accusations and I expect him to explain the situation fully”.

Japanese Prime Minister Shinzo Abe names Nobuteru Ishihara as the country’s new economy minister, following the announcement from Akira Amari that he would resign from his post, Bloomberg reported.