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Ex-aide to Hashimoto sought over loan allegations
TOKYO, Feb 17: Prime Minister Ryutaro Hashimotos office said Friday it is searching for a former aide accused of soliciting an unusually large "introduction fee" from a property developer, reports AP.
The former aids. Toyoki Kobayashi, asked for 40 million yen (378.000 dollar at current rates) in 1991 as a fee for introducing developer Kichl-nosuke Sasaki to a major bank. Sasaki alleged before Parliament on Thursday.
In Japan, politicians aides often act as intermediaries in business deals, taking a cut to help pay the huge expenses of running a politicians' office. The fee allegedly solicited in this case, however, Is considered exorbitant.
The allegation came in a parliamentary bearing about seven housing loan firms that
went broke because of ill-advised loans to real estate developers. Including Sasaki.
In making his unsupported allegation. Sasaki was Implying that blame for the housing lenders' collapse should fall on politicians as well as bankrupt borrowers such as himself.
The affair appeared unlikely to cause major embarrassment for Hashimoto because he was not personally involved and because the developer never actually paid any money.
Yo Kurosawa, president of the prestigious Industrial Bank of Japan, acknowledged that the Hashimoto aide called him in June and July 1991 but said he was never specifically requested to provide loans to Sasaki's company. In the end. no additional loans were made. Kurosawa said.
Hashimoto’s office said Friday it is searching for
Kobayashi to question him but coula not find him. Local media also said his whereabouts were unknown
Parliament continued Friday to debate the government's unpopular plan to ball out the. housing lenders using at least 680 billton yen (6.5 Hilton dollars) in tax money.
Kobayashi, the former aide, already got his boss in trouble once before. He resigned in August 1991 after acknowledging that he helped several people arrange loans through a banker who issued false deposit certificates to make It appear that the borrowers had collateral.
Hashimoto resigned as finance minister in October 1991 to take responsibility for his aide's involvement in the scandal. But Kobayashi was rehired in 1993 and remained on Hashimoto’s staff until last December.