LDP received 1.4 billion yen from life insurance companies

The ruling Liberal Democratic Party received about 1.4-billion yen (about 1.2-million dollars) from life insurance companies in financial difficulties for 10 years since 1992.

Japanese Communist Party Sasaki Kensho at the House of Representative Budget Committee meeting on May 28 revealed this fact.

Sasaki criticized the LDP for receiving money in return for providing a relief measure for those troubled life insurers.

The Koizumi Cabinet has decided to enable floundering life insurance companies to cut the yields they promised policyholders on the grounds that the need now is to prevent the insurance companies from going bankrupt.

Sasaki pointed out that firms making political donations included seven failed companies, including Chiyoda Mutual Life Insurance Co. and Kyoei Life Insurance Co., Ltd., and that these firms had continued political donations to the LDP until just before they went bankrupt.

Sasaki asked, "Are you going to go on in this way, siphoning up 1.4 billion yen from stagnating life insurance companies while having the people cover their losses by reduced-insurance returns and pensions?" Prime Minister Koizumi Jun'ichiro shrugged off his misgovernment by saying, "Collecting political funds is part of our political activities. The phrase 'siphoning up' may mislead the public." (end)