Asia-Pacific News

Jun 12, 2009, 6:40 GMT

Internal affairs minister resigns over Japan Post conflict of Hatoyama (1st Lead)

Tokyo - Japanese Internal Affairs and Communications Minister Kunio Hatoyama resigned Friday over a conflict about the reappointment of the president of Japan Post Holdings Co, media reports said. Hatoyama has opposed the reappointment of Yoshifumi Nishikawa as president of government-owned Japan Post because of the controversy over its attempt to sell a nationwide network of resort inns. Calls to settle the appointment decision were mounting because of fears that the dispute within the government of Prime Minister Taro Aso would affect support ahead of upcoming elections for the lower house of the legislature, which must be held before September. Hatoyama had wanted the Japan Post president to take responsibility over the deal to sell Kampo-no-yado inns and other housing facilities to the Japanese leasing company Orix for 10.9 billion yen (111 million dollars). The minister had ordered Japan Post to improve its business operation after claiming that the deal lacked transparency and fairness. As a result, the deal was called off. Hatoyama, who is a strong supporter of Aso, is the third minister to resign from his cabinet.

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