TOKYO: The investigation into Internet startup Livedoor Co. spread to the political sphere yesterday, with politicians grilling the prime minister over his support for the brash, young entrepreneur at the centre of the scandal.

The whole affair is proving to be a major embarrassment for Prime Minister Junichiro Koizumi because of his party's backing for Livedoor CEO Takafumi Horie in last September's elections.

During the campaign, top party officials stomped for Horie, a celebrity for his bold takeovers and defiant criticism of the stodgy old guard in corporate Japan. Horie and what he symbolized seemed to fit well with Koizumi's appeal for broader economic reform and fostering entrepreneurship.

Horie ended up losing his particular race in what turned out to be a landslide victory for Koizumi.

But with Horie now mired in a scandal, opposition politicians have been quick to seize the opportunity to attack the prime minister.

Seiji Maehara, leader of top opposition Democratic Party, accused the ruling party of exploiting Horie's fame and now has some serious explaining to do to the public.

"The prime minister and the ruling party cannot avoid ethical questions. The prime minister must apologize to the people," he said.

Koizumi merely replied that the government was still monitoring the case because it was still under investigation.

The Japanese premier and other senior Liberal Democratic Party figures are also facing criticism from within their own ranks over their support for Horie.

Heizo Takenaka, a key minister who has pushed Koizumi's postal reforms, had been most vocal among ruling party leaders in backing Horie before he lost on an independent ticket to an anti-Koizumi politician in the September poll.

"That responsibility is serious," Koichi Kato, a former secretary general of the ruling Liberal Democratic Party, told a television talk show.

Source: China Daily