Photo/Illutration Fumitake Fujita, co-leader of Nippon Ishin (Japan Innovation Party), at a party executive meeting held in the Diet building on Oct. 20 (Takeshi Iwashita)

Co-head Fumitake Fujita of Nippon Ishin (Japan Innovation Party) allegedly channeled public funds into an aide's company for seven years, the Japanese Communist Party's official newspaper reported on Oct. 29.

The online edition of Akahata (red flag) said that Fujita transferred approximately 20 million yen ($130,000) from 2017 to 2024 to a company in Hyogo Prefecture headed by his publicly funded aide.

The payments were reportedly used for services such as printing fliers and posters.

According to the report, most of the funds originated from public sources, including allocations for research, public relations and travel expenses.

The company reportedly paid Fujita’s aide an annual salary of 7.2 million yen.

The newspaper characterized the payments as a “kickback structure” involving public funds.

Fujita responded via X (formerly Twitter) on Oct. 30, saying, “This is an arbitrary article that makes it seem like a malicious tax loophole. But all transactions are legitimate and based on actual circumstances, conducted lawfully after consulting with experts.”

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