Internal Affairs and Communications Minister Sanae Takaichi flatly denied allegations Monday by a weekly magazine about her brother's involvement in a dubious loan scandal, accusing the publication of fabricating the story.

According to the Shukan Post story published Monday, the government-backed Japan Finance Corp. provided a total of ¥220 million in loans to an agricultural company in Mie Prefecture in 2011 and 2012. A former president of the agricultural firm was likely a key Takaichi supporter, the magazine claimed.

The loans turned sour in 2013, with over ¥100 million in unaccounted expenditures, the article said. To save the cash-strapped company, Takaichi's brother, who also serves as her secretary, introduced a sponsor, identified in the article only as a Tokyo-based company.

"It's a vicious and maliciously fabricated article. Both my secretary and I are not involved in this," Takaichi said during a news conference at the Diet.

The magazine cited an anonymous source who said the former president of the cash-strapped agricultural organization repeatedly said that despite the group's cash-flow woes, Takaichi would somehow take care of the loan repayments.

Takaichi steadfastly denied the claim, saying that neither she nor any member of her staff, including her brother, had ever met the former president.

Pointing out that the article was published just ahead of quadrennial unified local elections scheduled for April 12, Takaichi slammed the article as nothing but an attempt to smear her Liberal Democratic Party.

Takaichi said her brother is currently discussing with his lawyer the possibility of filing civil and criminal complaints against the magazine.