Japan Ozawa seen questioned over funding at weekend

TOKYO Jan 20 (Reuters) - The Japanese ruling party's No.2 official may be voluntarily questioned by prosecutors this weekend over a funding scandal that could dampen the government's chances in a mid-year election, Kyodo news agency reported on Wednesday.

The scandal could delay enactment of an extra budget aimed at propping up the fragile economy and has hurt support for the government ahead of an upper house election, in which the ruling Democrats want to win a majority so they can pass legislation smoothly. [ID:nTOE60H05M]

Ichiro Ozawa, the party's secretary-general who has been credited with engineering the Democrats' historic election win last August, has come under fire after three of his current and former aides were arrested on suspicion of improper reporting of political donations.

Prime Minister Yukio Hatoyama, who has repeatedly backed Ozawa, urged the party's kingpin to explain himself at an early stage.

"It is desirable for him to have an opportunity to explain his innocence as soon as possible," he told reporters.

Ozawa has denied any intentional wrongdoing, and he is not legally obliged to respond to the prosecutors' request that he answer questions in connection with the case.

Prosecutors may also question his Ozawa's wife on a voluntary basis, Kyodo quoted sources familiar with the case as saying. (Reporting by Yoko Nishikawa; Editing by Edwina Gibbs)