Sources: 'Loan' gave Japan pol free office

TOKYO, March 26 (UPI) -- A company embroiled in a scandal gave a group tied to Japan's trade minister a $405,000 office for free, political sources allege.

Nishimatsu Construction Co. of Tokyo advanced the money to an architectural design firm to buy a condominium used by Trade Minister Toshihiro Nikai, the sources told The Yomiuri Shimbun.

The design firm also helped refurbish the 820-square-foot Osaka, Japan, condo, initially a residence, to ensure it could be used as an office, the newspaper said.

The $405,000 loan indicates that Nishimatsu provided considerable favors for Nikai over the years, the sources allege.

Nishimatsu provided the condo money to the Kansai New Wind Association, a political organization run by Nikai's younger brother, the newspaper said.

Kansai later signed a contract to pay $28,000 a year for the office, the newspaper said.

"The rent included the cost of refurbishment and, therefore, the amount was proper," a Nishimatsu official said.

But Nishimatsu also donated $30,000 a year to a chapter of the center-right Liberal Democratic Party of Japan President Ichiro Ozawa to cover the rent's cost, the newspaper said.

The donations were disguised as individual contributions, the newspaper said.

Nikai said Thursday he was "making inquiries (about the issue) at organizations related to me."

"I haven't recognized the fact that rent for the office has been covered by others," he said.

The charges are the latest in an expanding campaign-finance scandal involving Ozawa, who vowed Tuesday to remain head of the party hours after his top aide was charged with falsely reporting political contributions from Nishimatsu.