Bureaucrat may have used government information for his speculative stock dealings

Akahata of January 11 reported that an official of the Koizumi Cabinet secretariat in charge of economic research has been found to be involved in speculative stock transactions using market information he may have obtained through his official work capacity. The Cabinet Secretariat Office the same day admitted that this was true.

According to Akahata, the official has written information on the computer bulletin board of the cabinet secretariat.

The secretariat office declined to identify the person involved but admitted the fact that that person had been an official in charge of research on economic affairs in the cabinet secretariat. Whether the official has made use of specific information obtained taking advantage of his position, and whether the person has violated the Securities and Exchange Law banning insider transactions, will be investigated further, and the official will be punished regardless, it said.

The person is a frequent user of the computer bulletin board and confessed on the board that he/she had often repeated "short sales" and other speculative stock dealings. Some of the written information was from the government and the Bank of Japan, and it included information on moves on stock prices. One piece of information said, "Now that major corporations are going bankrupt one after another, you have a big chance to buy.."

Akahata of January 12 stated, "Given the economic crisis under the Koizumi Cabinet which imposes heavy 'pains' on the people, a government official at a key post of the Cabinet Secretariat has been involved in speculation, and rather stirred it up through IT media. The responsibility of the Koizumi cabinet is great indeed." (end)