Yukio Hatoyama, leader of the Democratic Party of Japan, demanded on Monday that Liberal Democratic Party executive Shizuka Kamei testify in the Diet on his suspected link to scandal-hit mutual aid foundation KSD.

An official of the Health, Labor and Welfare Ministry said last week that Kamei, chairman of the LDP Policy Research Council, asked the ministry's predecessor, the Labor Ministry, in November 1999 to increase government subsidies for a technology institute being promoted by KSD.

However, Hatoyama defended DPJ Secretary General Naoto Kan, who received 1.5 million yen from KSD between 1994 and 1996 in the form of fundraising coupons for New Party Sakigake, to which he belonged.

"You cannot predict a group will do something wrong in the future," the leader of the largest opposition party told a news conference.

The bribery scandal surrounding KSD led to the resignation of Fukushiro Nukaga, state minister for economic and fiscal policy. Just a week earlier, Takao Koyama, a Liberal Democratic member of the Upper House, was arrested for allegedly receiving a bribe from KSD.

Political observers said that what is emerging is an extensive "money-for-influence" scandal reaching deep into the corridors of power. DPJ and other opposition parties insist that the Diet must conduct its own investigations to clarify the political and moral responsibilities of the politicians involved.

Uesugi to head panel

House of Councilors lawmakers with the Liberal Democratic Party on Monday picked former Home Affairs Minister Mitsuhiro Uesugi to head the chamber's Research Commission on the Constitution, replacing Masakuni Murakami following his resignation over a bribery scandal, LDP officials said.

The commission is to officially appoint Uesugi, 58, to the post after approving the resignation of Murakami after the regular Diet session convenes Wednesday, the officials said.

Murakami was head of the LDP's Upper House members but resigned Jan. 15 to take responsibility for his alleged involvement with KSD.