Fukushiro Nukaga was forced to resign Tuesday as minister for economic and fiscal policy over allegations that he received 15 million yen from the mutual-aid organization KSD in return for favors. Nukaga denied accepting the money himself but admitted that one of his secretaries had received it. He said he was stepping down to prevent the scandal from affecting the budget debate that will take place in the ordinary Diet session scheduled to open Jan. 31.
Nukaga's resignation has several political implications: First, he is the third member of Prime Minister Yoshiro Mori's Cabinet to resign over a scandal since it was launched last April following Prime Minister Keizo Obuchi's fatal stroke. His resignation has dealt a staggering blow to the Mori administration, which is plagued by abysmally low public-approval ratings. It has also raised concerns in the Liberal Democratic Party, New Komeito and the New Conservative Party over the ruling coalition's prospects in the July Upper House election under Mori's leadership.
Second, the departure of Nukaga, who was in charge of the government's Economic and Fiscal Advisory Council, undermined the Mori administration's plan to promote political leadership in national affairs. The council was the centerpiece of the powerful advisory groups that were set up when Cabinet functions were strengthened in the government reorganization that took place this month.