Japan Rocked By Bribery Scandal

Japanese prosecutors raided the defense ministry yesterday over a bribery scandal that threatens to engulf the government of Yasuo Fukuda just two months after he became prime minister.

The raid, broadcast live on TV, took place a day after the arrest of Takemasa Moriya, a former senior bureaucrat at the ministry who is suspected of accepting bribes from firms in return for securing them lucrative contracts for defense equipment.

The current finance minister, Fukushiro Nukaga, has also been implicated in the scandal but has denied any wrongdoing.

Prosecutors are investigating allegations that Moriya, nicknamed the "defense emperor", was treated to hundreds of golf outings worth ¥3.9m (£17,000) by Motonobu Miyazaki, a former executive at the trading firm Yamada Yoko, whose clients at the time included the US conglomerate General Electric. Moriya has admitted receiving ¥200,000 in cash from Miyazaki, but insisted it was a gift for his 60th birthday.

Opposition parties, emboldened by the scandal, have used their control of the upper house of parliament to block plans to extend Japan's mission in support of allied forces in Afghanistan.

Potentially more damaging to Fukuda, though, are claims that Nukaga, had dinner with Moriya and Miyazaki last year. The minister, who was Japan's defense chief in 1998 and 2005, said he had not attended the dinner and denies accepting bribes.

Though no charges have been brought, the scandal is an embarrassment to Fukuda, who took office promising to clean up politics after a year of financial impropriety involving ministers .

Fears that the finance minister's alleged involvement could lead to paralysis in negotiations over next year's budget have prompted speculation that Fukuda will call snap elections in search of a fresh mandate.