Democratic Party of Japan President Ichiro Ozawa on Wednesday flatly denied that his chief secretary knowingly accepted illicit donations from scandal-tainted Nishimatsu Construction Co. and accused prosecutors of "wrongful exercise of authority" in arresting the aide.

Ozawa, who has been touted as a possible next prime minister if the DPJ wins the general election this year, also said he will not quit the helm of the largest opposition force.

Later Wednesday, prosecutors searched Ozawa's office in Oshu, Iwate Prefecture, and the DPJ branch office in the capital, Morioka.