Prime Minister Yoshiro Mori offered a fresh apology before the Diet on Monday for recent corruption scandals involving LDP members and a Foreign Ministry official.

Mori's apologies came after Yukio Hatoyama, leader of the Democratic Party of Japan, the largest opposition force, harshly criticized Mori's Cabinet for the scandals during a plenary session of the Lower House.

Mori rebuffed opposition claims that the Liberal Democratic Party is tainted with concessions and corruption.

"I would offer a sincere apology," Mori told the Lower House, in reference to a recent scandal in which key LDP members allegedly received money from the mutual aid organization KSD in return for favors.

"But it would be unjust to judge that the allegation alone makes the LDP a party shackled by concessions and corruption," he reckoned.

In his first apology, made in a policy speech before the Diet on Wednesday, only "regret" was expressed about the KSD scandal, while clear apologies were made for the embezzlement allegedly carried out by a former senior diplomat in charge of secret diplomatic funds.

During Monday's question-and-answer session in the Lower House, Mori also said he will entrust the Diet with the decision of whether to summon three LDP lawmakers allegedly linked to KSD to testify before the legislature.

This move follows mounting pressure from New Komeito to take tougher measures during the probe.

Earlier in the day, Mori told reporters that he would welcome the decision made by senior LDP Upper House member Masakuni Murakami to testify under oath before the Diet.

During the Diet session, Hatoyama said,"The KSD scandal is all about the structural corruption of LDP politics," stressing his party's determination to corner the Mori Cabinet by thoroughly investigating the KSD scandals.

Regarding the alleged embezzlement of diplomatic funds, Hatoyama said the confidential fund system should be abolished, describing it as a "political relic" of the LDP's postwar reign.

Mori countered this claim by saying that the confidential funds are necessary to ensure smooth administrative and diplomatic operations.

Pointing out that the Foreign Ministry's recent report on the findings of its investigation did not clarify the issue entirely, Hatoyama urged Foreign Minister Yohei Kono to step down from his post should further investigation unearth new facts about the case.

The government is currently under fire over a scandal involving former Foreign Ministry official Katsutoshi Matsuo, 55, who stands accused of embezzling at least 54 million yen in ministry funds and using the money to buy race horses.

Hatoyama added that the government should cut the reserve fund for public works projects by 300 billion yen in the fiscal 2001 budget in an effort to restore the nation's financial health.

Takenori Kanzaki, leader of coalition partner New Komeito, urged Mori to set up a task force to probe the alleged embezzlement and compile measures to prevent repetition. The task force should include the Foreign Ministry and a third party, he said.

Kanzaki also said the government should create a system to monitor the use of the secret funds and disclose it to gain public understanding.

Mori dismissed Kanzaki's proposal, however, saying it is difficult considering the nature of the funds. He also rejected the investigative task force.