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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Australia China India Indonesia Japan Malaysia Philippines Thailand Vietnam Japan's 'shadow shogun' faces indictment over scandal AFP - Tuesday, October 5 Send IM Story Print TOKYO (AFP) - – Japan's former ruling party secretary general Ichiro Ozawa should be indicted over a funding scandal, a citizens' judicial review panel said Monday in a ruling that paves the way for legal action. The independent panel's decision represents a major turnaround for the 68-year-old Ozawa, dubbed the "Shadow Shogun", who only weeks ago was in contention to become Japan's prime minister in a party leadership election. He lost out to Prime Minister Naoto Kan last month. The panel ruled that Ozawa, former secretary general of the centre-left Democratic Party of Japan (DPJ), should be indicted over the case in which his fund management body allegedly gave false financial reports in 2004 and 2005. The panel's decision means that authorities must now appoint lawyers to prosecute Ozawa, who will be accused in a courtroom for the first time in his four-decade political career. "Mr Ozawa's explanation about the resource of 400 million yen (4.9 million dollars) in the land purchase fund is extremely irrational and cannot be believed at all," the panel said in a statement. Ozawa is credited with engineering the DPJ election landslide in August 2009 that ended more than half a century of almost unbroken conservative rule. He was seen as the guiding hand behind then-premier Yukio Hatoyama's reign. Prosecutors have indicted three of Ozawa's former aides and raided his offices over allegations the fund laundering millions of dollars through an upscale Tokyo property, though Ozawa has repeatedly protested his innocence. Authorities had earlier dropped the case, citing a lack of evidence. It was the panel's second and final decision after it ordered Tokyo district prosecutors to reopen the case against Ozawa in April. Under Japanese law, the review panels made up of 11 citizens chosen by lottery can take a second look at decisions by prosecutors following public complaints, a process in part modelled on the US grand jury. In its decision, the panel raised questions about previous decisions not to indict the DPJ lawmaker over allegations of false financial reporting. "The decision was quite regrettable," Ozawa responded in a statement. But "I'm confident that my innocence will be proved during a trial for sure." The panel's order may further damage Kan's government, which has seen its approval ratings slide over its handling of a bruising territorial row with China over disputed East China Sea islands. Ahead of the panel's decision, public support for Kan's government fell to 53 percent, down 13 points from the previous month, a poll by the mass-circulation Yomiuri Shimbun daily said on Monday. Katsuya Okada, DPJ secretary-general, told reporters he was "surprised" about the "extremely regrettable" decision without indicating whether or not the party would now expel Ozawa. Sadakazu Tanigaki, head of the largest opposition party, the Liberal Democratic Party, urged Ozawa to resign as a lawmaker, telling reporters: "He has not fulfilled his responsibility for explaining about the case." When millionaire-politician Hatoyama left office in June after less than nine months amid rock-bottom approval ratings, Ozawa also stepped down as party secretary general. Kan at the time told him to be "quiet for a while". Ozawa stunned observers by declaring his leadership challenge, with the backing of Hatoyama, before being defeated by Kan. 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