Resignation of scandal-hit finance official approved

April 24, 2018

Tokyo- Japan's cabinet on Tuesday approved the resignation of Vice Finance Minister Junichi Fukuda, who last week offered to quit over his alleged sexually harassing remarks.

The resignation of Fukuda, 58, deals an additional blow to his boss, Finance Minister Taro Aso, as his ministry has already been under fire for its manipulation of documents related to a controversial cut-price sale of government land to school operator Moritomo Gakuen.

Aso, who doubles as deputy prime minister and is a close ally of Prime Minister Shinzo Abe, is expected to come under increased pressure to step down. At a news conference, Aso said Fukuda's resignation is "extremely regrettable," but he reiterated that he himself has no plans to quit.

Aso said his ministry will uncover the truth about Fukuda's alleged sexual harassment and take disciplinary action against him depending on the result.

According to the ministry, disciplinary action cannot be taken against government employees who have resigned, but a certain amount can be deducted from their retirement allowance with their consent.

Aso said that a retirement allowance of up to 53 million yen for Fukuda will be reduced by a certain amount if disciplinary action against him is judged necessary, and that the payment will be suspended for the time being. Fukuda accepted the conditions, according to Aso.

Opposition parties have objected to the payment of the retirement allowance to Fukuda without disciplinary action being imposed on him.

Aso said any step against Fukuda will not be determined without listening to both him and the alleged victim. "There are various public opinions, such as the possibility that Fukuda fell into a trap," Aso said.

Fukuda became the first Japanese vice finance minister to resign in two decades. He joined the ministry in 1982 and assumed the post of vice minister in July last year. Deputy Vice Finance Minister Koji Yano will act as vice minister in his place.

Fukuda's resignation means that two of the ministry's three vice ministerial posts are vacant. At the ministry's National Tax Agency, its deputy head is currently acting as commissioner, a vice ministerial post, after Nobuhisa Sagawa stepped down last month over the controversial land deal.

Fukuda tendered his resignation on Wednesday, saying the allegation made it difficult for him to perform his duties, though denying any wrongdoing. The allegation was first reported by the Shukan Shincho weekly magazine.

TV Asahi Corp. has lodged a protest with the ministry, claiming that one of its reporters was sexually harassed by Fukuda. Jiji Press