Sunday, July 27, 2008Kyodo News
Naoki Akiyama, a senior official of a Foreign Ministry-linked organization who was arrested Thursday on tax evasion charges, may have received $250,000 in October 2006 from defense equipment trader Yamada Corp., sources said Saturday.
The cash, equivalent to about ¥30 million, was handed to Akiyama, 58, directly by Yamada's senior officials at a place in the United States, they said, adding that the Tokyo District Public Prosecutor's Office has opened an investigation on suspicion that Akiyama received the money directly to avoid leaving a paper trail.
Akiyama is executive director of the Japan-U.S. Center for Peace and Cultural Exchange, a group ostensibly established to promote cultural understanding between Japan and the U.S. Many Diet members close to the defense industry have headed the center.
It is suspected that Akiyama was paid in return for supporting Yamada in securing sales contracts with manufacturers of U.S. defense equipment, the sources said.
Yamada was competing for the contracts with Motonobu Miyazaki, a former managing director at Yamada who left to launch his own business, they said.
Prosecutors have been investigating Akiyama on suspicion of tax evasion, which has emerged as part of investigations into a high-profile bribery scandal involving former Vice Defense Minister Takemasa Moriya, 63, and Yamada.
Miyazaki, 70, is being tried on bribery charges.
Akiyama is suspected of hiding about ¥232 million in consultant fees and other income from 2003 and 2005 and of evading around ¥74 million in tax payments as a result.
Akiyama has denied the tax evasion allegation.
According to the sources, the $250,000 was paid from off-the-book funds at Yamada International Corp., a U.S. subsidiary of the Japanese defense equipment trader.
An internal document dated 2006 was also found. It says that Yamada was to pay $300,000 to Akiyama, the sources said.
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