Japanese PM to stick with Ozawa despite funds scandal

Last Updated: Sat, 16 Jan 2010 19:00:00 +1100

The Japanese prime minister Yukio Hatoyama says he plans to have Ichiro Ozawa stay on as the ruling party's second in command despite his being embroiled in a funding scandal.

On Friday prosecutors searched Mr Ozawa's office and arrested a parliamentarian for accounting irregularities.

Mr Ozawa, the secretary-general of the ruling Democratic Party, has apologised for the affair and says there may have been miscalculations but denies any intentional wrong-doing.

The four month old Hatoyama government has seen its popularity level drop to 50 per cent from an initial 70 per cent.

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