Numbers are power. The greatest objective is winning elections. Stop at nothing to win, even at using the national budget…There is a growing stench from the old-time politics not seen since the days of the LDP’s Tanaka faction. No objections to that spectacle are heard coming from within the party (DPJ). Where have the new politics gone? We sigh.
- 6 February Asahi Editorial
THE LAST TIME we checked up on Ozawa Ichiro, the despot of Japanese democracy, we looked at accusations that prosecutors were abusing their authority in the investigation of his failure to report JPY 400 million in political funds, JPY 352 million of which his political fund management group used to buy land. The working assumption is that it was part of a scheme to launder the money he received from construction companies for his political operations.
No, I don’t know why a politician’s political fund management group needs to buy land, either.

After an investigation that included more than seven hours of direct questioning of Mr. Ozawa on two occasions, the prosecutors concluded they lacked the evidence to indict him for filing improper political fund statements. They did indict three other co-conspirators, however. The biggest fish was Ishikawa Tomohiro, then Mr. Ozawa’s aide and now a lower house member of the ruling Democratic Party of Japan. The other two were a former Ozawa bookkeeper who is now his aide with a salary paid from public funds, and another former aide.
This encouraged the cocky and contemptuous Mr. Ozawa to flaunt his wattles in a rare performance of political tidbitting. He asserted that he was vindicated in his claim he had done nothing wrong, and declared that he would stay in his official position as Secretary-General of the Democratic Party and unofficial role as a latter-day Kublai Khan. It is not every politician in a free market democracy who thinks he can get away with simultaneously flipping his proverbial middle finger to nearly 90% of the public, his nation’s political class, the concept of the rule of law, and common decency.
Meanwhile, those who thought the prosecutors had abused their authority redoubled their criticism—while willfully ignoring the obvious.
Clean government
The weekly Shukan Gendai of 6 February presented a dialogue between journalist Tachibana Takashi and former prosecutor Munakata Norio. The former is a veteran reporter whose reputation rests on his coverage of the scandals involving former Prime Minister Tanaka Kakuei—Mr. Ozawa’s patron—and the Lockheed Corporation. The latter was a special investigator on the team who uncovered the facts in that same scandal, and a prosecutor himself for the Recruit scandal of the early 90s.
To begin the dialogue, Mr. Tachibana made an observation that puts the questionable transaction in perspective. For those not familiar with Japanese currency, the JPY 10,000 note is the highest-denominated bill in circulation.
Tachibana: One unusual aspect of the current case is the surprisingly large amounts of cash that were transferred. For example, the land that Ozawa purchased in Tokyo for JPY 400 million ($US 4.47 million) was paid for in cash that Ozawa himself got together and handed to his aide Ishikawa.
To break down that total of JPY 400 million, one JPY 10,000 note weighs about one gram. JPY 100 million weighs ten kilograms, and JPY 400 million weighs 40 kilograms (about 90 lbs). That means you’d have to carry the money around in two large suitcases of the kind you’d use for an overseas trip.
Play with that image in your mind for a bit. Mr. Ozawa’s political fund management group needs to buy land, so he pulls out the equivalent of four and a half million dollars from his safe at home–90 pounds of money–and gives it to Mr. Ishikawa to make the deal. It is of such bulk and weight that it would require two suitcases to carry it.
Does that seem in keeping with the conduct of the de facto head of a political reform party? Or does it flicker in the imagination like a scene from a Hollywood Mafia movie?
Now combine that image with this reality: Prime Minister Hatoyama has decided that the Japanese word keppaku best describes Mr. Ozawa. When speaking to the Diet a few weeks ago, Mr. Hatoyama used the word so many times it began to lodge in the brain of his listeners like an earwig.
The word keppaku in Japanese means pure, clean, or immaculate, and can be used to mean integrity.
Political consultants in the United States select focus groups and perform extensive testing to discover which word or phrase best resonates with the public. It is difficult to imagine a similar process conducted with Japanese focus groups that would result in the selection of that word in association with Ozawa Ichiro.
Back to Mr. Tachibana:
Tachibana: Abnormalities of that sort have been a part of backroom political deals for a long time. Cash also moved in hundred-million-yen units in the Lockheed and Kanemaru scandals.
(Tanaka Kakuei assigned Kanemaru Shin the task of overseeing Ozawa Ichiro’s political education. Prosecutors also searched his home during the investigation of a scandal, once upon a time. It too had a safe. His was filled with gold bullion.)
Munakata: In my long experience as an investigator, when money moves in cash, it’s being moved so that it can’t be traced later…That’s why, when a large amount of money moves as cash, our basic focus when we investigate is on the question, “What’s going on here?”
Tachibana: It’s been reported that Ishikawa said Ozawa inherited the money from his father, deposited it in a shinkin bank account, withdrew it in 1998, and then put it in a safe in his house…The explanation that he inherited several hundred million yen when his father died in 1968, kept it in a bank for 30 years, and then, more than 10 years ago, withdrew it and kept it in a safe in his house is extremely difficult to believe.
Munakata: Whether at home or anywhere else, keeping several hundred million yen in cash is a way to prevent it from being seized by prosecutors or tax authorities.
Tachibana: The investigators have searched the premises of several construction companies, and one person who acted as a go-between for their collusion, so it’s easy to see the objective of the investigation.
Munakata: That’s exactly right. Their objective is more than just determining whether the improper contributions of Mizutani Construction were part of the money used to purchase that land. They’re looking into the whole network of public construction projects in the Tohoku region.
The two men also address the question of whether the prosecutors were overzealous:
Tachibana: Some theorize that the prosecutors are out of control and their superiors aren’t very anxious to pursue the investigation, but I don’t think that’s true at all. The general principle is that all the prosecutors work as a group. The lead prosecutor, those in the field, and the investigators work together to examine the legal issues, the evidence, and the investigative issues from every aspect…they pursue the case until they’re satisfied there’s no question of the guilt of a politician or his aide.
Munakata: Absolutely. The department heads of the prosecutors’ bureau in the Ministry of Justice get involved, and give their approval only when the proof is ironclad. Prosecutors do not gamble.
Some suggested the prosecutors arrested the aide because they were angry Ozawa wouldn’t voluntarily come in to provide information. That is not possible. In fact, in this case, Ishikawa admitted the charges, and his attorney told the media that his client admitted the charges.
Mr. Munakata concluded by saying he thought it would be difficult to prove that Mr. Ozawa violated the political funds law or committed tax evasion. His observation seems to have been borne out.
Following the announcement that Ozawa Ichiro would not be indicted, Mr. Munakata was asked for his opinion on TBS TV. Here’s what he said:
The prosecutors were able to obtain a certain amount of evidence, but it seems they concluded it wasn’t enough to obtain an indictment and conviction. Politicians have a “Wall of Aides”, and in this case they couldn’t obtain sufficient testimony from three of them. For example, they couldn’t elicit testimony that they had received instructions from Mr. Ozawa, or that Mr. Ozawa was fully aware of what was going on, and there was insufficient evidence.
The Bungei Shunju
There’s a good reason Mr. Ishikawa is willing to play the wall for his former boss. It’s found in an article called Portrait of a Dictator in the February issue of Bungei Shunju, perhaps Japan’s most prestigious monthly magazine. It presents direct quotes from Kanazawa Kei, a former aide to Ishikawa Tomohiro. Mr. Kanazawa says he was an eyewitness to the work to conceal evidence against Mr. Ozawa and lent a hand himself. He also said he realizes that his statements will expose him to the possibility of prosecution.
The article begins with some background information on the relationship between Mr. Ishikawa and Mr. Ozawa. Mr. Ishikawa worked as a live-in houseboy in the Ozawa household as a Waseda student, tending to such chores as washing the car and weeding the garden. He continued to work for Mr. Ozawa after graduation until he won election to the Diet in his own right last year. (He defeated LDP incumbent Nakagawa Shoichi, who was bounced from his position as finance minister in the Aso Cabinet after showing up drunk at a press conference during an international symposium. Mr. Nakagawa later committed suicide.) Mr. Kanazawa describes Mr. Ishikawa as a “dyed-in-the-wool” Ozawa loyalist.
Here is some of the information Mr. Kanazawa presents in the article:
During a telephone conversation, Mr. Ishikawa told him that he and two others, one of whom was a long-time aide to Mr. Ozawa, had “hidden some dangerous things”.
He was present when Mr. Ishikawa removed files from the fund office, as well as the business cards of people working for both Nishimatsu Construction and Kajima Construction. The latter is a Forbes Global 500 company and Japan’s leading construction company.
Mr. Kanazawa helped move five cardboard boxes filled with incriminating information. Most of that information involved Kajima rather than Nishimatsu. He was told that the funds from Nishimatsu were the smallest amount received from any construction company funneling money to Ozawa.
He said another Ozawa aide casually observed that they managed to hide some other documents just before the investigators arrived. Had they come two hours sooner, he said, they’d all have been arrested.
The five cardboard boxes were taken to the office of an Akasaka attorney who had once been an Ozawa aide.
When Mr. Ishikawa met with prosecutors, he usually told them he couldn’t clearly remember any details, or had forgotten them altogether.
Ah, but the prime minister of Japan says that Ozawa Ichiro is keppaku.
The Asahi Shimbun
Last Monday the Asahi Shimbun ran an article stating they had acquired documents and testimony from people at construction companies showing that Mr. Ozawa’s office had sought the assistance of those companies for election campaigns. The companies were asked to provide lists of voters and the names of political activists. Ozawa’s office ranked the degree of support provided by those the voters, as well as corporate support, with the letters A, B, or C. An employee of one of the companies said, “If we wanted any jobs, we felt that we had no choice but to pour our sweat into the elections.”

Another construction company official said the Ozawa office got angry with them when one person on the list didn’t respond favorably to their requests. The office received roughly 150,000 names from about 60 construction companies for the 1998 upper house election alone.
One document from a Tokyo-based company contained this handwritten note in the margin: “We don’t have many jobs in Iwate (Mr. Ozawa’s home prefecture). Please forgive us, because I don’t think we can meet your expectations.” Another official said that submitting lists with few names or weak supporters resulted in subcontractors getting cut out of business.
Mr. Ozawa, incidentally, was responsible for introducing reforms of political funding when he ran the Hosokawa administration from backstage during the early 1990s.
The prime minister of Japan now says the DPJ wants to ban corporate funding of political parties. Think that will clean up the mess? No?
Ah, but the prime minister of Japan says that Ozawa Ichiro is keppaku.
*****
About 40 Diet members were so overjoyed at the news there would be no indictment of their Shogun they gathered in the cafeteria of the legislators’ residential building and threw beans to drive out the devil (not Mr. Ozawa) as is customary at Shinto shrines during Setsubun. They all got gloriously sloshed at a drinking party afterwards.
Their relief at the decision is understandable. They are politicians, and most of them owe their political fortunes to Mr. Ozawa. They know the DPJ would crumble as a serious force were his boot heel removed from the necks of the party groundlings. Doubtless lurking in the back of their minds is the suspicion that they are incapable of winning reelection without him, which would mean they’d have to go back to work for a living.
What sort of people would think the prosecutors’ decision was a matter for celebration? What is their conception of integrity? What pollutes their interior landscape?
Ah, but the prime minister of Japan says that Ozawa Ichiro is keppaku.
More to come?
Though prosecutors declined to indict Mr. Ozawa on the charge of falsifying political fund reports in this transaction, he may be at jeopardy from indictments for other cases, or for income tax evasion for this one.
Also, the citizens group that filed the original criminal complaint could request that an inquest committee review the case. If the committee decides a second time that the case requires an indictment, the prosecutors are required to indict Mr. Ozawa in accordance with a revision of the law enacted last year.
The modified limited hangout
Ishikawa Tomohiro will neither resign from his Diet seat nor the party despite his arrest and indictment, and despite his admission that the basic facts at issue are true.
In fact, he said that his local supporters:
…strongly encouraged me to go back to the Diet as soon as possible and start my activity as a representative of this region.
Mr. Smith went to Washington, and so Mr. Ishikawa will go again to Tokyo.
Three opposition parties—the Liberal Democratic Party, New Komeito and Your Party—submitted a resolution to the lower house calling for his resignation. No one expects the DPJ, the party in government, to discuss the matter.
More ominous from the DPJ perspective is that their coalition partner, the Social Democratic Party, wants Mr. Ishikawa to appear before a lower house political ethics subcommittee. The party said it was necessary for him to give an explanation to the committee before they decided how to vote on the opposition resolution. They haven’t decided yet whether they will suggest that Mr. Ozawa appear before the same subcommittee.
Some in the DPJ are getting edgy, however. Sengoku Yoshito, the Minister for National Strategy, said this about Ishikawa:
He could always leave the party, couldn’t he? I think it would be best if he decided that. That’s what I would do, at a minimum.
Justice Minister Chiba Keiko said the decision was up to him, but he had to weigh heavily the fact of his indictment.
Genba Koichiro, lower house MP and one of a group of seven prominent anti-Ozawa DPJ members, gave an interview for the latest issue of the Bungei Shunju, which is on newsstands today (the 10th).
Here are some excerpts:
Mr. Ozawa’s political prominence probably makes it difficult (for some party members) to say anything. When freedom of speech is lost because of worries that they’ll put the screws to you, it means (the party) is not in sound condition.
And:
We are in grave danger…We must create a structure in which we can function without relying on one person, Mr. Ozawa…Further evolution is necessary from the perspective of establishing democracy within the party.
In other words, Japan’s ruling party is in the throes of a reign of terror and its members are afraid to anger the dictator. Some are actually filled with joy that their oppressor has been spared.
Who’s in charge here? This is the only answer you’ll need for that question, from Prime Minister Hatoyama:
Secretary-General Ozawa will meet with him (Ishikawa) soon, so I think a decision will be made then.
After all, the prime minister says Ozawa Ichiro is keppaku.
Ominous portents
A recent poll shows that 87.2% of the electorate does not accept the Ozawa explanation that no illegal money was involved. Only 7.9% do.
A candidate clearly identifying his party affiliation as the LDP cruised to victory in the Tokyo prefectural council election on the 24th last month. His party label would have made that unthinkable as recently as last fall.
Recent polls show the public’s favorite for the next prime minister is Masuzoe Yoichi, former health minister in LDP governments. His new book, called Prime Minister, was also released today.
One of the advertising materials used for books in Japan is a strip of paper wrapped around the cover at the bottom. It’s called an obi, or belt, and contains short, eye-catching PR statements. The obi for Mr. Masuzoe’s new book reads:
Hatoyama and Ozawa—Leave now!
The arrogance of power
Mr. Ozawa was asked at a press conference about the poll results showing that national sentiment is dead set against him. He put voice to his inner sneer:
There have been a series of reports over the past month that Ozawa Ichiro took dirty money, and that he was a scoundrel. If you had done me the favor of reporting that Ozawa Ichiro was keppaku, and then taken a poll…
He left the thought hanging.
Yes, this coprophagous scarab is actually going to tough it out. When his mentor Tanaka Kakuei was exposed to an equally intense hail of bullets, his constituents returned him to office in a lower house election with the highest margin of victory in the country. Perhaps Mr. Ozawa thinks time has stood still. Perhaps he thinks he can survive because he’s bought off enough of the electorate and special interest groups with their own money.
Whatever else he thinks, the contempt in which he holds those who would support him, his political foes, and his fellow countrymen is almost tangible.
He’s dodged this fusillade, but the bullets intended for him have struck his party instead. Those wounds might prove to be fatal, particularly as too many in the party are trying to ignore the bleeding.
The Asahi editorial writer quoted at the top of this piece could only sigh at the stench of the old-time politics.
I wonder how much longer it’s going to take before someone finally flushes the toilet.
UPDATE: There are reports today that Ishihara Tomohiro will resign from the DPJ tomorrow. He will still grace the Diet with his presence, however.
* In the issue of Bungei Shunju released yesterday, Mr. Tachibana offers the opinion that Ozawa Ichiro’s political career is, for all intents and purposes (事実上), over. Flush!
* The latest issue of the weekly Shukan Gendai also promotes the idea that the prosecutors will use income tax evasion to start Round 2 (or is it Round 3?) against Mr. Ozawa.
* Some in the media think that Prime Minister Hatoyama’s recent appointment of diehard Ozawa foe Edano Yukio to Government Reform Minister in the Cabinet is a broad hint that he is stepping away from Mr. Ozawa. That could well be the case–Mr. Hatoyama can read poll numbers, after all. Then again, the new appointee is the co-leader of a DPJ group/faction with Maehara Seiji, another anti-Ozawan, who has always been in the DPJ Cabinet.
During a speech on the 8th, Mr. Edano made the following comments:
Even if he himself subjectively thinks that he “hasn’t made any mistakes”, he should resolve the matter to bring about a change in politics, and that includes his own withdrawal.
Others hold that circumstances forced the prime minister’s hand, and that the appointment is an effort at damage control with both the public and his own party. First, he wants to show the public that the party’s fate is not necessarily tied to that of Mr. Ozawa. Second, though the Ozawa forces will criticize the move, a failure to address anti-Ozawa sentiment within the party would cause more internal disruption.
The good news is that Mr. Edano seems to be serious about government reform.