The Liberal Democratic Party has provided 100 million yen on "moral grounds" to support scandal-hit KSD, a mutual-aid foundation for small firms, LDP Secretary General Taku Yamasaki said Friday.

The payment, made Tuesday, is viewed as a de facto return of party membership dues KSD shouldered as part of an effort to recruit LDP members from among its ranks. The case is linked to a bribery scandal involving two former LDP lawmakers.

However, Yamasaki denied the party had paid back membership fees provided by KSD, saying the LDP was not obliged to return the money because it received the dues legitimately.