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Japanese opposition aide charged Japan's Ozawa stays amid scandal
(about 7 hours later)
An aide to Japanese opposition leader Ichiro Ozawa has been charged with violating a political funds law, Japanese media has reported. Japanese opposition leader Ichiro Ozawa has said he will stay in his post despite a close aide being charged over a fundraising scandal.
Kyodo news agency said the aide, 47-year-old Takanori Okubo, appeared to be denying the charges. At a news conference, he said his ultimate goal was to achieve a change in government in upcoming elections.
Japanese media said the charges put more pressure on Mr Ozawa to decide whether or not to resign. Before the scandal broke, Mr Ozawa was tipped as the favourite to unseat the flailing prime minister, Taro Aso - ending 50 years of conservative rule.
Before the scandal broke, Mr Ozawa was considered a likely victor in national elections which must be held this year. But recent opinion polls have shown his popularity is waning.
Prosecutors have alleged that Mr Okubo had received 21 million yen ($214,800; £147,000) in donations from Nishimatsu Construction Co, in violation of a law on political funding. Mr Ozawa announced his decision to continue as the leader of the Democratic Party of Japan (DPJ) after senior party officials met to discuss his future.
He was arrested on 3 March, along with former Nishimatsu President Mikio Kunisawa, 70, and Akifumi Okazaki, 67, a former senior employee of Nishimatsu. Unlawful donations
Tough decision It came hours after his secretary, Takanori Okubo, 47, was charged with violating a political funds control law - a claim he strongly denies.
Analysts had predicted Mr Ozawa stood his best chance ever of unseating the incumbent Liberal Democratic Party (LDP) leader, Prime Minister Taro Aso, in the coming elections. Prosecutors allege that Mr Okubo received 21 million yen ($214,800; £147,000) in unlawful donations from Nishimatsu Construction.
Mr Ozawa's decision not to step down was reportedly made after prosecutors decided not to question him in connection with the scandal.
Analysts had predicted he stood his best chance ever of unseating Mr Aso, the Liberal Democratic Party (LDP) leader, in elections which must be called by October.
Such a victory would end almost 50 years of unbroken rule by the LDP, which is facing huge voter discontent amid worsening economic gloom.Such a victory would end almost 50 years of unbroken rule by the LDP, which is facing huge voter discontent amid worsening economic gloom.
Analysts and Japanese media have said Mr Ozawa, 66, was likely to stay on if his aide was charged only with breaking the funding law, but would probably resign if charges were more serious. But analysts say that recent events make a solid victory less likely.
He was expected to hold a news conference later on Tuesday, Japanese media said.
Mr Ozawa left the LDP in 1993 after losing a power struggle and joined the Democrats after they formed in 1998.Mr Ozawa left the LDP in 1993 after losing a power struggle and joined the Democrats after they formed in 1998.
Commentators say he is a shrewd strategist but has been criticised for what some see as a high-handed attitude.Commentators say he is a shrewd strategist but has been criticised for what some see as a high-handed attitude.