Allegations of Document Tampering Revive Abe Scandal in Japan

(Bloomberg) -- Allegations that public documents may have been altered have revived a controversy over a heavily discounted sale of public land to a school with connections to Prime Minister Shinzo Abe.

The scandal has dogged Abe for more than a year, with questions being raised about whether his wife's connection to the school meant its operator was able to buy government land cheaply. It's come to the fore again after the Asahi newspaper reported last week that finance ministry documents relating to the sale were altered before being submitted to lawmakers for inspection.

Finance Minister Taro Aso told reporters on Tuesday that the ministry is investigating if there was any malfeasance, including the concealment of public records. Aso said he'd speak on the matter in a parliamentary committee later Tuesday, but the session was canceled.

Abe has repeatedly denied any involvement on his part, or that of his wife Akie, in the sale of land to Moritomo Gakuen, an educational foundation that subsequently filed for bankruptcy. The foundation ran a kindergarten in Osaka known for espousing elements of the prewar nationalist curriculum, as well as for its explicit backing of Abe, and had planned to use the land for an elementary school.

There are signs the public remains concerned about the issue. A JNN poll on March 5 found Abe's support fell below 50 percent for the first time in 5 months, and 80 percent of respondents said there needed to be more explanation of the land sale. The affair rocked Abe's popularity last year, with his approval rating at points falling below the disapproval rating, before a series of North Korean missile tests was seen to unnerve the public.

Scandal Timeline

• February 9, 2017 -- The Asahi newspaper reports that Moritomo Gakuen bought land from the government for a fraction the price of comparable plots.
• March 16, 2017 -- The government denies that Abe made a donation to the operator of the school.
• March 23, 2017 -- The head of Moritomo Gakuen, Yasunori Kagoike, tells parliament that he received a donation of 1 million yen ($9,400) in cash from Abe via his wife Akie. The government reiterates its denial that this happened.
• March 24, 2017 -- Aso tells reporters that the sale of land to Moritomo was carried out with proper procedures and pricing.
• April 21, 2017 -- Moritomo Gakuen files for bankruptcy.
• July 31, 2017 -- Yasunori Kagoike and his wife Junko are arrested for fraud, according to reports.
• March 2, 2018 -- The Asahi newspaper re-opens debate on the issue, reporting that the finance ministry may have altered documents related to the land sale.

--With assistance from Isabel Reynolds

To contact the reporter on this story: Connor Cislo in Tokyo at ccislo@bloomberg.net.

To contact the editors responsible for this story: Brett Miller at bmiller30@bloomberg.net, James Mayger, Gearoid Reidy

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