A total of 328 Foreign Ministry officials were punished Friday for illicitly pooling more than 200 million yen in public funds, using about 160 million yen for mostly unofficial purposes over 6 1/2 years, Foreign Minister Makiko Tanaka said Friday.

The officials pooled the money at hotels and other firms where they had bills for the ministry padded.

Two officials were dismissed -- Ryuji Arai, consul at Sao Paulo, Brazil, who used 4.11 million yen for personal purposes, and Shuzo Narita, consul at Chennai, India, who used 3.87 million yen.

While working at the ministry's Second Africa Division between April 1995 and January 1999, Arai used funds pooled at Hotel New Otani in Tokyo and other hotels for staff farewell parties and meals .

Narita paid his mobile phone expenses from the money, also pooled at Hotel New Otani, when he worked at the Asia-Europe cooperation section between September 1997 and June 1999, according to the ministry's in-house probe into the case.

Of the 200 million yen, about 150 million yen was pooled at Hotel New Otani.

The investigation found that about half of the 160 million yen was used to make up budget shortfalls for duties such as entertaining foreign guests and holding receptions, while the rest was used for staff parties, meals and other personal purposes.

Another 42.4 million yen remains unused at the hotels and firms. A total of 12 companies, including hotels, travel agencies and car-hire firms, pooled the funds.

Foreign Minister Makiko Tanaka told a news conference that she will take a one-month pay cut to take responsibility for the scandal, while Vice Foreign Minister Yoshiji Nogami will also voluntarily return 10 percent of one month's salary.

"This kind of inappropriate practice went on for a long time," Tanaka said, admitting that the practice was organizational rather than restricted to specific ministry officials.

The punitive measures follow a series of embezzlement and other money-related scandals that hit the ministry in the past year, which resulted in arrests of several officials on criminal charges.

"I apologize to the Japanese people from the bottom of my heart, and at the same time, we will restart the ministry's job to carry out diplomatic duties," Tanaka said.

Tanaka said, however that this is not the end of the story.

"It's very unfortunate, but I don't think all the wrongdoings at the ministry have been disclosed with this."

In addition to the two dismissals, the ministry suspended three officials for 15 days, who used about 300,000 yen each for their personal purposes.

Four other officials, who misappropriated between 110,000 yen and 180,000 yen, faced 20 percent pay cuts for three months. Others were reprimanded.

Of the ministry's 119 divisions, 71 were found to have illegally pooled funds, indicating a lack of accountability. Despite the practice being so widespread, Deputy Vice Foreign Minister Kyoji Komachi refused to give details about which section used how much money.

When pressed by reporters, he only said that the First International Organizations Division of the Economic Affairs Bureau had the highest amount of pooled funds of "between 5 million yen and 10 million yen."

"Please understand that we are trying to take responsibility with all the members at the ministry as the practice was widespread," he said.

About 2000 officials -- deputy division heads and higher ranks -- will jointly pay back the 160 million yen plus interest, while the ministry will also request retired high-ranking officials to share the cost, Komachi said.