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https://ja.wikipedia.org/wiki/%E6%9D%B1%E4%BA%AC%E4%BD%90%E5%B7%9D%E6%80%A5%E4%BE%BF%E4%BA%8B%E4%BB%B6

 

The Tokyo Sagawa Express scandal (東京佐川急便物件tо̄kyо̄ sagawa kyūbin bukken) was a corruption scandal in which Kanemaru Shin, Vice President of the Liberal Democratic Party (LDP) and Chairman of the largest faction within the LDP, the Keisekai, received 500 million yen ($4.6 million USD) in illegal donations from transportation company Sagawa Express. In October 1992, Kanemaru was forced to resign as a member of the House of Representatives.

 

 

1. Overview

1.1 Nihon Kо̄mintо̄ case

1.2 Collapse of the Japanese asset price bubble

1.3 Arrests

1.3.1 Internal divisions and resignations

1.4 Investigation

2 Impact

2.1 The fall of the 1955 System

2.2 Formation of new political parties

3 Hosokawa administration

3.1 Donation allegations

3.2 Candidacy for Governor of Tokyo election

4 Comments made by Murakami Masakuni

5 Scandal name

5.1 Impact on the Sagawa Group

 

Overview

 

Nihon Kо̄mintо̄ case

In 1987, Takeshita Noboru, the LDP's top candidate to become the next Prime Minister, was subject to a relentless smear campaign by right wing organization Nihon Kо̄mintо̄ (“Japan Emperor's People Party”), who broadcast excessive praise of Takeshita in an effort to discredit him. The motive for this is believed to have been Takeshita's betrayal of ex-Prime Minister Tanaka Kakuei, to whom he owed a debt of gratitude. Takeshita coped with the situation by consulting his confidant, Kanemaru Shin. Kanemaru asked then company president of Tokyo Sagawa Express Watanabe Hiroyasu to act as an intermediary between himself and Ishii Takamasa (real name Ishii Susumu), a leader of Inagawa-kai, the third largest yakuza group in Japan. Takeshita, Kanemaru, Watanabe and LDP lawmaker Ozawa Ichirо̄ discussed how to resolve the situation at a Tokyo hotel. This led to Takeshita visiting ex-Prime Minister Tanaka's house to apologize. Though Takeshita was turned away at the door, the campaign subsequently quietened down.

 

Uozumi Hirоhide, a LDP lawmaker, reported that he paid a visit to another leader of Inagawa-kai, Inagawa Seijо̄, over the matter. Kanemaru Shin met with Ishii Takamasa at a high class ryо̄tei restaurant in Tokyo. Kanemaru said of the meeting, I met with [Ishii] out of a feeling of gratitude. I of course knew it wasn't the best idea, but I did meet him.” A few weeks later in November 1987, Takeshita Noboru became Prime Minister. Sagawa Express's Watanabe Hiroyasu was delighted to have established such strong connections to the political world as a result of his success. Subsequently, Tokyo Sagawa Express began to provide loans and loan guarantees for large sums of money in succession to companies that had a relationship with Ishii Takamasa, such as the Iwama Country Club, formerly owned by Heiwa Sо̄gо̄ Bank, where Ishii held managing rights. The total amount came to around 439 billion yen ($4 billion USD), which went to 40 companies, including six front companies for Inagawa-kai that took a total of $932 million USD, and one individual, Ishii himself.

 

Collapse of the Japanese asset price bubble

The collapse of the so-called bubble economy became pronounced in February 1991, and Ishii Takamasa's interest payments became increasingly delayed. It became an inevitability that Ishii would not be able to repay his huge debts. Tokyo Sagawa Express executives started to panic and asked Ishii to submit a repayment plan. Ishii's response was that he needed yet more money, and Tokyo Sagawa Express decided to guarantee yet more debt. Tokyo Sagawa Express themselves were on the verge of bankruptcy, owing vast debts, and were subsequently absorbed by their parent company, Sagawa Express. According to court records, Ishii Takamasa's subordinates visited Tokyo Sagawa Express every few weeks, asking for guarantees. It is believed that the Tokyo Sagawa Express executives knew of Ishii's background at the time. In July 1991, all Tokyo Sagawa Express executives including company president Watanabe Hiroyasu were dismissed. In the same month, the Tokyo Sagawa Express executives were indicted on charges of breach of trust. In September 1991, Ishii Takamasa died of ill health.

 

Arrests

On February 14, 1992, the special investigation team of the Tokyo District Public Prosecutors Office arrested former company president Watanabe Hiroyasu and three others, including former managing director Saotome Jun, on charges of aggravated breach of trust for allegedly causing damage of 95.2 billion yen ($8.8 billion USD) to Tokyo Sagawa Express. With billions of yen having been diverted into illegal organizations, Tokyo District Public Prosecutors Office continued to pursue allegations of illegal donations and fraudulent loans. On September 28, 1992, for receiving political contributions of 500 million yen ($4.6 million USD) from Tokyo Sagawa Express, Kanemaru Shin was summarily indicted for violating the Political Funds Control Act. Kanemaru admitted to the omission of a written report on the income and expenditure of his political contributions, and escaped with just a fine. Amid public backlash over Kanemaru's lenient treatment, lawmaker Aoshima Yukio went on a hunger strike, demanding Kanemaru's resignation from the Diet. Ultimately Kanemaru was forced to resign.

 

Internal divisions and resignations

Ozawa Ichirо̄ insisted on a thorough fight against prosecutors over the 500 million yen ($4.6 million USD) in political contributions. Kajiyama Seiroku, also a member of the LDP faction Keisekai, called for plans to be made to hastily remedy the situation. Relations between Ozawa and Kajiyama had been strained up until this point, but this became a crucial moment of conflict, with internal divisions in Keisekai becoming more serious. The downfall of Kanemaru paved the way for infighting over who would be his successor within the Keisekai faction. In February 1992, it came to light that Tokyo Sagawa Express purchased five million yen's worth of party tickets from Yoshida Kazuko, a member of the Socialist Party of Japan from Niigata Prefecture, which prompted suspicions that these too were illegal donations. Yoshida Kazuko resigned from all party positions as a result. There were also allegations of donations from Tokyo Sagawa Express to Tsutsui Nobutaka, member of the Socialist Party and secretary general of “New Wave Society,” during the Niigata election. Tsuitsui also resigned from all party positions. Governor of Niigata Prefecture Kaneko Kiyoshi resigned in September 1992, under suspicion of having received a hundred million yen ($930,000 USD) in donations from Tokyo Sagawa Express. Efforts were made, however, to bury the whole scandal, which ensured the truth about the actions of other high profile lawmakers and the routes of black market funds did not come to light.

 

Investigation

On November 26, 1992, at the Budget Committee of the House of Representatives, ex-Prime Minister and Member of the House of Representatives Takeshita Noboru testified as a witness, as requested by the Socialist Party. Takeshita acknowledged that he met with Watanabe Hiroyasu at a hotel, though spoke in vague terms, and gave no clear answers. “[This situation] has given rise to the tragedy of one of my human predispositions being laid out in such [unfavorable] terms, such that, even when I reflect on it myself, I believe the behavior is a crime for which one deserves condemnation.”[1] On Feburary 17, 1993, the House of Representatives Budget Committee called Ozawa Ichirо̄ to testify, though he denied any involvement, stating,I made the tea, so I don't remember the nature of the conversation.” He also claimed he was unaware of the five hundred million yen donations made to Kanemaru. The testimony of both Takeshita Noboru and Ozawa Ichirо̄ ultimately came to nothing, and the LDP hit back, requesting that 11 opposition party members also be called to testify, including Tsuitsui Nobutaka, Yoshida Kazuko and Yasutsune Ryо̄ichi of the Socialist Party. The matter degenerated into political mud slinging. In March 1993, Yasutsune Ryо̄ichi was expelled from the Socialist Party by their disciplinary committee, after having continued to resist advice to leave the party and resign as a member of the Diet. In April 1993, it was discovered that Yasutsune Ryо̄ichi had hidden income of over one hundred million yen ($920,000 USD). It was suspected that these too were illegal donations from Tokyo Sagawa Express, but the truth of the matter has remained unclear.

 

Impact

This scandal, alongside the Recruit scandal of 1988, had a considerable impact on the state of politics. Despite being of such a serious nature and implicating both the LDP and Socialist Party, the truth of what went on remains unknown. The Tokyo Sagawa Express scandal led to increased criticism of established political parties and deepening political distrust. After Kanemaru's fall from grace, Kajiyama Seiroku became Secretary General of the LDP. Ozawa Ichirо̄ retreated to the fringes, and together with Hata Tsutomu and Watanabe Kо̄zо̄, broke away from Keisekai and formed the Hata group.

 

The fall of the 1955 System

On June 18, 1993, the Socialist Party, Komeito Party, Democratic Socialist Party and the Social Democratic Federation put forth a motion of no confidence in Prime Minister Miyazawa Kiichi's cabinet. Led by members of the Hata faction, 39 LDP Diet members approved the motion, including Ozawa Ichirо̄, Hata Tsutomu, Watanabe Kо̄zо̄, Okuda Keiwa, Ishii Hajime, Fujii Hirohisa and Kumagai Hiroshi, and the vote of no confidence passed, 255 to 220. Miyazawa cabinet then dissolved the House of Representatives, in accordance with article 7, item 3 of the Japanese Constitution, to conduct the 40th general election of the House of Representatives. On June 21, 1993, members of the Utopia Politics Study Group Takemura Masayoshi, Hatoyama Yukio and Tanaka Shūsei left the LDP and formed a new political party called The New Party Sakigake, which championed political reform. On June 23, 1993, Hata Tsutomu and Ozawa Ichirо̄ called for political realignment and reform and formed The Japan Renewal Party (Shinseitо̄), with Ozawa Ichirо̄ serving as Secretary General. In reaction to this move, LDP Chief Cabinet Secretary Kо̄no Yо̄hei leveled heavy criticism at the members of these new 'reformers' at a regular evening press conference, saying, “Aren't these people the ones responsible for the current distrust of politics?” The leaders of the LDP faction Seiwakai also faced criticism. Political commentator Tachibana Takashi criticized Ozawa Ichirо̄'s calls for political reform and founding of The Japan Renewal Party as “laughably absurd,” in a piece in the Asahi Shimbun on June 24, 1993.

 

Formation of new political parties

The early 90s were known as a boom for the establishment of new political parties. Hosokawa Morihiro of The Japan New Party fielded candidates, followed by Ozawa Ichirо̄ of The Japan Renewal Party and Takemura Masayoshi of The New Party Sakigake. The political environment had changed to one of negativity towards LDP and desire for a change of government. As a result, the LDP lost their majority in 1993 and a coalition of opposition parties took power. The Socialist Party also suffered a considerable defeat, due to the new party boom and resignation of Ueno Kenichi, winning only 70 seats in the 1993 election, the lowest since the 1955 system had been established. In contrast, The Japan New Party, The Japan Renewal Party and The New Party Sakigake made significant electoral gains. The resignation of Prime Minister Miyazawa Kiichi's cabinet signaled the end to 38 years of LDP rule since the cabinet of Prime Minister Hatoyama Ichirо̄ in 1955. The Tokyo Sagawa Express scandal was a key motivating factor in bringing down the 1955 system and the realignment of political parties. A coalition of eight political parties formed a cabinet led by Prime Minister Hosokawa Morihiro.

 

Hosokawa administration

The transition of political power from the LDP to the Hosokawa administration in effect put a lid on the Tokyo Sagawa Express scandal. After the general election, five members of the The Japan Renewal Party including Hata Tsutomu and Fujii Hirohisa filled the positions of Minister for Foreign Affairs, Minister of Finance, Minister of International Trade and Industry, Director General of the Defense Agency and Minister of Agriculture, Forestry and Fisheries. Takemura Masayoshi of The New Party Sakigake became Chief Cabinet Secretary, and Hatoyama Yukio took up the post of Deputy Chief Cabinet Secretary. The Socialist Party was also a part of the coalition, with six of its members becoming cabinet ministers. In February 1994, the Prime Minister's announcement and immediate withdrawal of a new “national welfare tax” brought to the surface conflict between Ozawa Ichirо̄ and Takemura Masayoshi. Takemura resigned in an attempt to remedy the situation. The Hosokawa administration had maintained a high approval rating up until this point, but now began to waver.

 

Donation allegations

In March 1994, with the foundations of the government increasingly unstable, allegations were made that Hosokawa Morihiro had received contributions from Tokyo Sagawa Express. The LDP, now in opposition, seized on these allegations, pursuing the issue with the Prime Minister every day. Hosokawa claimed that the money had “already been repaid,” but the LDP continued to denounce Hosokawa. The National Diet stalled on the issue and the approval rating for the administration plummeted. In April 1994, Hosokawa Morihiro resigned as Prime Minister. The short lived Hosokawa coalition ended after only nine months. It was highly unusual for a Prime Minister to resign before the National Diet could began budget deliberations. The LDP seemed satisfied with the resignation and did not pursue the matter further. In 1998, Hosokawa Morihiro stepped down as a member of the House of Representatives part way through his term of office, and since then has mainly concentrated on cultural pursuits and his role as Head of the Kumamoto-Hosokawa clan.

 

Candidacy for Governor of Tokyo election

In December 2013, Inose Naoki resigned as Governor of Tokyo over allegations he borrowed 50 million yen ($465,000 USD) in cash from a hospital chain. In his stead, the Democratic Party of Japan, ex-Prime Minister Koizumi Junichirо̄ and others pushed for ex-Prime Minister Hosokawa Morihiro to run for Governor of Tokyo. In January 2014, Hosokawa Morihiro signalled his return to politics by announcing his candidacy for Governor on a platform of abandoning nuclear power. Despite twenty years having passed, the allegations of donations from Tokyo Sagawa Express yet again surfaced. Due to the similarity of the Tokyo Sagawa Express allegations to those that resulted in the resignation of Inose, the previous Tokyo Governor, many candidates pursued this as a line of attack against Hosokawa. Hosokawa released evidence to prove his innocence and continued his campaign, though ultimately came third, losing out to winner Masuzoe Yо̄ichi.

 

Comments made by Murakami Masakuni

Murakami Masakuni, ex-LDP House of Councilors member who had hounded Hosokawa Morihiro over the donation allegations, later stated that the scandal of Hosokawa receiving money from Sagawa Express had been “a hoax.” According to Murakami, the LDP knew that Hosokawa had already repaid the loan from Sagawa, but pursued Hosokawa in the National Diet with the intent of overthrowing the government, and Murakami used the position of head of the Budget Committee in the House of Councilors to that end. Hosokawa had been unable to produce the entirety of the loan records proving his innocence due to their inclusion of big names in the LDP who continued to borrow money from Sagawa Express – something Murakami was also aware of [2].

 

Scandal name

This scandal was at first referred to as the “Sagawa Express scandal,” though due to another corruption scandal involving Sagawa Express in Nara Prefecture in 2001, it became necessary to make a distinction between the two. That case is therefore referred to as the “Nara Sagawa Express scandal,” with the one covered in this article being referred to as the “Tokyo Sagawa Express scandal.”

 

Impact on the Sagawa Group

Sagawa Express was granted licenses for increasing numbers of delivery areas, eventually becoming a nationwide service. This is said to be due to support from the political world, which provides large amounts of money to LDP Diet members. As a result of this scandal, the Sagawa Express Group hastily merged the group's regional companies in order to save Tokyo Sagawa Express. The Group underwent further restructuring in 2002. Tokyo Sagawa Express became Sagawa Express Tokyo Branch, then later Sagawa Express Kantо̄ Branch, and from March 21, 2007, became Kantо̄ Sales Department, under direct control from head office.