Japan's Ozawa refuses to leave party

Japanese ruling party powerbroker Ichiro Ozawa Thursday refused a request from Prime Minister Naoto Kan to leave the party until his trial over a funding scandal ends, throwing a gauntlet down at the feet of the embattled prime minister.

Kan, struggling with sagging ratings and a divided Parliament, where he needs opposition help to enact a workable budget, must now decide whether to force Ozawa out, despite his clout as a veteran strategist and a leader of a group of lawmakers in the ruling Democratic Party of Japan (DPJ).

Ozawa, a former DPJ leader who has repeatedly said he has done nothing wrong and has vowed to clear his name in court, said at a news conference that he wanted to remain in the party.

"It can't be helped if a majority (in the party) think that I should distance myself from the party or that the party should punish me in some way. But this isn't appropriate for the advancement of sound party politics or for democracy," Ozawa said. "I have disclosed all (of my funding records) and have not done anything wrong."

Ozawa was indicted last week over alleged misreporting by his political funding body, after a judicial panel of ordinary citizens ruled last year that he must face charges.

Kan said DPJ executives would discuss how to deal with Ozawa's fate and hoped for a decision soon. Media reports have said party executives were considering suspending Ozawa's party membership for six months, cutting him off from party funds or official support.

"I hope to resolve this issue without spending too much time on it," Kan told reporters.

Reuters