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Wednesday, 23 February 2011 - Japan ruling party suspends 'Shadow Shogun'
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    Read more with google mobile : Japan ruling party suspends 'Shadow Shogun'

    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 Weekend Edition Australia China India Indonesia Japan Malaysia Philippines Thailand Vietnam Japan ruling party suspends 'Shadow Shogun' AFP - Wednesday, February 23 Send IM Story Print TOKYO (AFP) - – A split in Japan's centre-left ruling party deepened Tuesday as it suspended the membership of the premier's key rival, faction boss Ichiro Ozawa, who faces charges over a funding scandal. Prime Minister Naoto Kan -- battling cabinet approval ratings below 20 percent and the threat of parliamentary gridlock -- last week faced down a revolt by 16 Ozawa supporters who threatened not to vote with his government. Ozawa, a veteran backroom fixer sometimes dubbed the "Shadow Shogun", last year failed in a bid to topple Kan as head of the Democratic Party of Japan (DPJ) and prime minister but has remained a thorn in his side since then. A scandal over political funding irregularities has long hung over Ozawa and given ammunition to the conservative opposition, which has threatened to block key budget financing bills in the divided Diet legislature. Prosecutors in January indicted Ozawa, 68, over the affair. He and three former aides who also face trial deny any wrongdoing. Ozawa, in talks with the DPJ's ethics panel, proclaimed his innocence and said there was "no rational reason" he should be suspended. Kan's DPJ has repeatedly urged Ozawa to stand down, worried the scandal will taint the party with the whiff of Japan's old-style money politics. On Tuesday the party formally decided to suspend the membership of Ozawa, its former leader, until the end of his trial, which Kyodo News said is not expected to start until around September. The suspension bars Ozawa from taking party posts or attending its formal functions, and could deny him the party's ticket in future elections -- but it does not force him to give up his parliamentary seat. The ruling party's move was certain to enrage his supporters, a large faction sometimes dubbed "Ozawa's children" who owe their political lives to Ozawa because he hand-picked, backed and coached many of them. Key government bills would be imperilled if the 16 rebels, who last week threatened to leave the DPJ's parliamentary bloc, now renew their threat not to support the government in the lower house. Without their support, the DPJ could not muster the two-thirds majority needed to overcome upper house vetoes of its bills by the conservative Liberal Democrats, even with the backing of smaller parties. Kan already faces growing calls from within his party to step down as he seeks to push through crucial fiscal reform measures to stimulate the economy and whittle down huge public debt. Ratings agency Moody's Tuesday lowered its outlook on Japan's sovereign debt to "negative", voicing doubt that its leaders will manage to contain the industrialised world's biggest debt of around 200 percent of GDP. Last month the rival ratings agency Standard & Poor's cut Japan's credit rating for the first time since 2002, accusing the government of lacking a "coherent" strategy to ease its mountainous debts. Both agencies cited political uncertainty in Japan as clouding the government's long-term finances. The DPJ swept to power in 2009 after it ousted the long-ruling Liberal Democrats in a landslide. But many observers predict Kan, Japan's fifth premier in five years, will soon be forced to resign or call snap elections. Recommend Send IM Story Print Related Articles Scores trapped in debris in quake-hit Christchurch AFP - 35 minutes ago Myanmar tycoon stranded at ice mountain: official AFP - 1 hour 25 minutes ago New Zealand quake kills at least 65 Reuters - 2 hours 16 minutes ago England edge Netherlands in W. Cup cricket AFP - Wednesday, February 23 Japan ruling party suspends 'Shadow Shogun' AFP - Wednesday, February 23 News Search Top Stories Libya live report US consumer confidence hits three-year high Defiant Kadhafi vows to remain in Libya New York oil prices jumps 8% on Libya worries World markets tumble, oil spikes on Libya unrest More Top Stories » ADVERTISEMENT Most Popular Most Viewed Oral sex linked to cancer risk Planet could be 'unrecognizable' by 2050, experts say Machu Picchu victim of own success: UN Social media, cellphone video fuel Arab protests Libya shockwaves hit Italian businesses More Most Viewed » More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Weekend Edition Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo! 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