Scandal-tainted trading company Yamada Corp. may have provided ¥30 million last year to a Foreign Ministry-linked organization whose board members include former Defense Minister Fumio Kyuma and other lawmakers, according to sources close to the matter.

Prosecutors have searched the offices of the Japan-U.S. Center for Peace and Cultural Exchange in connection with an embezzlement case involving Yamada and are believed to be analyzing its documents to determine the flow of funds, the sources said.

Naoki Akiyama, executive director of the Tokyo-based center, denied receiving funds from Yamada in an interview with Kyodo News.