Contractors quizzed in Ozawa funding scandal

Executives of three contractors linked to a dam project in Iwate Prefecture in Japan have been questioned by prosecutors over accounting irregularities by Democratic Party of Japan secretary general, Ichiro Ozawa.

Those questioned included the chairman of Kajima Corporation, an adviser to Taisei Corporation and an executive from Shimizu Corporation. All three took part in the questioning on a voluntary basis.

The investigators from the Tokyo District Public Prosecutor's office are reported to have asked about the clout, known as "the voice from heaven," exerted by Ozawa's office in determining contract awards for local public works projects, and whether funds were provided to Ozawa in return.

The former president of Mizutani Construction, a sub-contractor on the Isawa dam project reportedly told the prosecutor's office that Taisei gave aides of Ozawa JPY 50 million (US$ 553000) in October 2004 and a further JPY 50 million (US$ 553000) in April 2005.

In a separate development, Mr Ozawa voluntarily met with prosecutors yesterday for a further three hours of questioning at which he reiterated what he had previously stated. He said afterwards, "I am willing to cooperate with prosecutors on this matter as much as I can."

So far three of Mr Ozawa's aides have been arrested as the Tokyo District Public Prosecutor's office investigates suspected falsification of records regarding the 2004 purchase of a plot of land in Tokyo by Mr Ozawa's fund management organisation.