Japan’s Economy and Fiscal Policy Minister Akira Amari announced his resignation over graft allegations, in what is the most high profile loss for Prime Minister Shinzo Abe’s Cabinet thus far and could derail his “Abenomics” program to boost the economy.
A close ally of Abe, Amari, decided to step down after it was revealed that he and his aides received cash from a construction company. The minister announced his resignation at a news conference on Thursday after rejecting allegations for a week.
The government named Nobuteru Ishihara as the new Economy Minister.
Amari’s resignation over bribe taking is thus far the most significant political crisis faced by Abe since he took office in 2012.
He was a crucial member of Abe’s cabinet and the key engineer of “Abenomics” program to boost the Japanese economy. He was also Japan’s top negotiator for the Trans-Pacific Partnership talks.
The scandal broke after a Japanese magazine reported last week that Amari and his aides received cash from an unidentified construction company in the Chiba Prefecture in exchange for favors.
At the press conference, Amari acknowledged that he and his aides received the money. He also admitted receiving 500,000 yen in cash himself on two occasions, but said it was political donation. However, the minister said he was embarrassed about what happened under his watch.
Reports suggest that a large part of the money received went unrecorded in Amari’s political funds report. If proved correct, then the minister could be charged with violation of the Political Funds Control Law.
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