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Facing what is possibly the biggest threat to his administration ever, Prime Minister Shinzo Abe on Friday denied the influence-peddling allegations made in sworn testimony Thursday by the head of a nationalist school firm.

Yasunori Kagoike, head of Osaka-based Moritomo Gakuen, alleged in Diet testimony that the name of first lady Akie Abe may have been instrumental in making a cut-price land deal possible and repeated claims that she donated ¥1 million in person to the school in the prime minister’s name.

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