Japan PM in risky fight

The Democratic Party needs to win a majority in the poll for parliament’s upper house in July or August to smooth policy-making, but the scandal linked to its powerful number two official, Ichiro Ozawa, has hurt voter support.

Failure to win an outright majority would leave the Democrats depending on two tiny but vocal coalition partners needed to pass bills in the upper chamber, possibly leading to pressure for bigger spending that could push up bond yields.

To try to turn the tide, party lawmakers have lashed out at prosecutors, whose image as standard-bearers of justice has already been hit by criticism of high-handedness in recent years.

The strategy might woo back voters, but the face-off could also backfire if Prime Minister Yukio Hatoyama and his party are perceived as trying to abuse their political clout.

The Democrats’ complaints include suspicions that prosecutors are unfairly targeting Ozawa and that they are leaking details on the case to media in a bid to manipulate public opinion.

“The media’s impact on public opinion has been huge, to the point that many people now think that Ozawa has done something wrong,” said lawmaker Toshio Ogawa, a former public prosecutor who is part of a team looking into possible leaks.

“It’s hard to say what the prosecutors’ motives are, but in the worst case, they want to build public support for the investigation because they are struggling to build a case without firm evidence.”

A spokeswoman for the Tokyo District Public Prosecutor’s Office declined to comment.

Ozawa has denied intentional wrongdoing, but may voluntarily submit to questioning this weekend, media said.

Three of his current and former aides were arrested last week on suspicion of improperly reporting donations, while media reports say prosecutors are also looking into the possibility of illegal activity by Ozawa himself.

Party kingpin
Despite the threat to voter support, Hatoyama has stood by Ozawa, a kingpin who wields huge influence in the party and is hailed for masterminding an election victory last August that ended a half-century of almost unbroken conservative rule.

Some analysts say prosecutors are pursuing Ozawa to foil the party’s reform agenda, which includes reducing bureaucrats’ control over policies.

“The public prosecutors are seen as the Knights Templar, if you like, of the Japanese bureaucratic system,” said Mark Burges-Watson, COO of research company Japaninvest.

“So if anyone is going to come out fighting the DPJ (Democratic Party of Japan), it’ll be them.”

But a showdown could hurt Hatoyama, who has already come under fire this week for having urged Ozawa to “fight on”. Media and the opposition said the remarks suggested bias against prosecutors, although Hatoyama has denied this.

On Wednesday, Hatoyama was also forced to rule out the possibility of the government soon proposing a bill to require that interrogations by police and prosecutors be videotaped, as long advocated by human rights activists.

While the party endorsed the idea in the past after forced confessions led to the convictions of people later found to be innocent, Hatoyama said submitting legislation now could be seen as putting pressure on prosecutors.

Some tabloids have rallied behind the Democrats’ criticism of prosecutors, but mainstream media are unsympathetic, calling for a more detailed explanation to the public from Ozawa himself.

“The Democrats could just end up further irritating prosecutors and having the public wonder if politicians are trying to interfere with prosecutors’ work,” said Mikitaka Masuyama, professor at the National Graduate Institute for Policy Studies. “The Democrats are not being good at damage control.”