TOKYO, Nov. 27 KYODONov.27 02:00
Overseas slush funds allegedly pooled by Motonobu Miyazaki, a former executive of defense equipment trader Yamada Corp., and other related individuals totaled about $10 million, sources familiar with the matter said Monday.
Miyazaki, 69, who is under arrest on suspicion of embezzlement, is believed to have overseen the funds' operation so that he and others may freely use its money through Yamada's U.S. subsidiary.
The special investigation squad at the Tokyo District Public Prosecutors Office will soon start final talks to establish a bribery case, as part of the funds may have been used to entertain former Vice Defense Minister Takemasa Moriya, 63, the sources said.
The prosecutors will soon expand the scope of the investigation and begin a full-scale questioning of those involved in the case, they said.
The sources said the slush funds were put together more than 10 years ago at Yamada's U.S. arm, Yamada International Corp., by methods such as cashing checks issued for the company's executives.
The funds were alleged to have been managed by Osamu Akiyama, a 70-year-old former president of Yamada International, under Miyazaki's instructions. Akiyama is also under arrest on suspicion of embezzlement.
Miyazaki and others are suspected of pooling part of the company's operating profits and earnings from stock sales in separate accounts, bringing the total sum of the slush fund unveiled so far to about $10 million. Prosecutors suspect part of the money was spent on entertaining Moriya and other defense officials.
Moriya has admitted in parliament to having played golf more than 200 times with Miyazaki and to having received gifts and special treatment in violation of the ministry's in-house code of conduct.
Moriya has denied doing any favors for Miyazaki despite their ties.
==Kyodo
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