Ex-MOF Official Denies Abe’s Instruction about Document Tampering

March 27, 2018

Tokyo- Former Japanese Ministry of Finance official Nobuhisa Sagawa told parliament on Tuesday that there was no instruction from the prime minister's office about altering documents on a dubious state land transaction with private school operator Moritomo Gakuen.

It was the MOF's Financial Bureau that dealt with the document changes in question, Sagawa, who was director-general of the bureau at the time, testified as a sworn witness in a House of Councillors Budget Committee meeting.

In addition, he denied having been told by Prime Minister Shinzo Abe, his wife, Akie, or Minister of Finance Taro Aso to make the changes to the documents on the deal with Moritomo Gakuen in which a land plot in western Japan was sold at a huge discount.

The name of the prime minister's wife, once appointed as honorary principal of an elementary school that was set to be opened on the land plot, and related descriptions were deleted from the original MOF documents.

Also denying the involvement of Chief Cabinet Secretary Yoshihide Suga, deputy chief cabinet secretaries or executive secretaries to the prime minister, Sagawa said, "There were no discussions or consultations (with the prime minister's office.)"

He insisted that the document changes were made within the Financial Bureau and that other MOF bureaus were not involved.

But Sagawa refused to speak about who instructed the tampering and the motives behind the conduct, claiming that doing so may lead him to face criminal prosecution.

Objections raised by opposition lawmakers over Sagawa's response led to a temporary halt to his questioning.

In June 2016, the school operator purchased the land in question for 134 million yen, about 800 million yen lower than its appraisal value. The sizable discount has sparked allegations of favoritism against Abe.

Sagawa said he does not think at all that the land deal was made under the influence of the prime minister or his wife.

The transaction was made according to law, he said, reiterating his view that it was appropriate.

While in office as the chief of the Financial Bureau, Sagawa said at parliamentary meetings that records on negotiations with Moritomo Gakuen had been discarded.

Sagawa said during Tuesday's testimony that these remarks of his own were not detailed enough and were misleading.

At the same time, he said he still thinks that his past parliamentary remarks denying having had price negotiations with Moritomo Gakuen were correct.

He brushed aside opposition allegations that the document tampering stemmed from Abe's parliamentary remark on Feb. 17 last year that he would resign as prime minister and as a lawmaker if he or his wife were proved to have been involved in the state land deal in question.

Sagawa said he believes there was no difference between what he said in parliament before and after the prime minister's remark.

"As I was the head of the bureau in charge (of the land deal) at the time, responsibility lies with me," Sagawa said. "I'd like to offer my deep apology."

Earlier this month, the MOF said in an investigation report that 14 sets of documents related to the state land lot sold to Moritomo Gakuen were altered after the controversial deal came to light in mid-February 2017.

Sagawa said he is not aware of any altered document other than the 14 sets.

The MOF has explained that the changes were made between late February and April last year to ensure the documents' consistency with Sagawa's parliamentary remarks, and that Sagawa was ultimately accountable for the tampering.

Sagawa spoke in public for the first time since he resigned as head of the National Tax Agency on March 9. The sworn testimony before parliament means that he could face perjury charges for any lies.

In separate sworn testimony at the House of Representatives Budget Committee, he voiced his remorse over a suicide committed by an employee at the MOF's Kinki Local Finance Bureau in western Japan, which was in charge of negotiations on the property deal with Moritomo Gakuen. "I'm sorry if it was linked to the document tampering," he said. Jiji Press