Photo/Illutration Kenji Kanda, state minister of finance, at the Finance Ministry on Nov. 9 (Satoshi Kimura)

The state minister of finance apologized on Nov. 9 after admitting that the land and building owned by a company that he heads had been foreclosed on four times after failing to pay property taxes.

“I am sorry for the trouble I have caused you all,” Kenji Kanda, a Lower House member of the ruling Liberal Democratic Party, told an Upper House Financial Committee meeting. “I deeply regret what occurred and will take precautions to prevent a recurrence in the future.”

But he declined to resign from his post as a deputy of the finance minister.

“I will continue to devote myself to the performance of my duties,” said Kanda, 60, responding to a question from Kenji Katsube of the main opposition Constitutional Democratic Party of Japan.

Kanda effectively admitted to a Nov. 8 report by the Bunshun Online website that his personal company had repeatedly failed to pay local taxes and a building in Nagoya owned by the company had been foreclosed on four times.

As to why the company was in arrears, Kanda said he is examining the situation.

Katsube asked if he had knowingly withheld tax payments, given the number of times the building had been foreclosed upon.

Kanda said, “I left letters of demand and other documents in the hands of staff at my tax accountant office. I was too busy with my work to get involved,” although he added that he believes that the demand letters were delivered.

During an afternoon committee session, Akira Koike of the Japanese Communist Party also criticized Kanda.

"'I did not see (the demand letters) because I was a Diet member and was busy.' Do you think such an excuse will work?" he asked. "Isn't it that you must be the first person to fulfill your duty to pay taxes because you are a Diet member?"

In addition to the tax delinquency, the Bunshun Online report said Kanda, a licensed tax accountant, had not taken training required by the Japan Federation of Certified Public Tax Accountants’ Associations.

Kanda also confirmed the report and apologized.

On Nov. 8, he told reporters that he would scrutinize what was reported.

Finance Minister Shunichi Suzuki said, “Finance Ministry officials, including the state minister of finance and myself, must have a high sense of ethics, given the position of the ministry, which receives tax payments from the public.”

But he only said, “I expect (Kanda) will continue to explain his actions with sincerity.”

Two LDP lawmakers appointed by Prime Minister Fumio Kishida to one of the three top ministerial positions in September have resigned from their posts over scandals.

Taro Yamada stepped down as parliamentary vice minister of education on Oct. 25 after admitting to an affair with a woman, and Mito Kakizawa resigned as state minister of justice on Oct. 31 for advising that illegal paid internet advertising be utilized by a candidate in a Tokyo ward mayoral election.

When he shuffled his Cabinet in September, Kishida said he had appointed "the right people in the right places."

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