A ruling Liberal Democratic Party chapter headed by Takuya Hirai, minister in charge of information technology policy, has received political donations from a company penalized by the transport ministry for bid rigging, data from political fundraising reports showed Friday.

The chapter of an electoral district in Kagawa Prefecture received ¥120,000 ($1,070) from air conditioning system-maker Dai-Dan Co., which was barred in 2014 by the Land, Infrastructure, Transport and Tourism Ministry from tenders due to bid-rigging related to construction work on projects related to the Hokuriku Shinkansen.

Hirai's office said it will return the money after confirming the company was penalized.