Japan minister named in defense scandal hearing

By Isabel Reynolds

TOKYO (Reuters) - Japanese Finance Minister Fukushiro Nukaga was linked to a defense scandal on Thursday, as a former official said the politician had once dined with a contractor who was recently arrested for suspected embezzlement.

Former Vice defense Minister Takemasa Moriya said under oath in parliament that he had been at the dinner with Nukaga and another former defense Minister, Fumio Kyuma, had also dined with the defense contractor.

Nukaga told reporters he had no memory of attending such a dinner and had never accepted entertainment from Moriya or defense contractor Motonobu Miyazaki.

Any widening of the scandal over the contractor's wining and dining of government officials is likely to further complicate Prime Minister Yasuo Fukuda's efforts to restart a Japanese naval mission in support of U.S.-led operations in Afghanistan -- stalled by opposition control of parliament's upper house.

It could also damage Fukuda's ability to implement policies in the face of a divided parliament, analysts said.

Fukuda took power in September after his predecessor quit in the wake of a string of ministerial scandals.

"I think it was Mr Kyuma and Mr Nukaga," Moriya told a parliamentary committee after repeatedly saying he did not want to name politicians who had dined with Miyazaki in case his memory was inaccurate.

"I remember the occasion with Mr Nukaga clearly," he said later, adding that he did not know who had paid for the meal.