New Japan cabinet hit by fresh minister woes

TOKYO, Sep 5 (Reuters) Japan's new environment minister admitted today to mistakes in past political fund reports, dealing yet another blow to Prime Minister Shinzo Abe, who has been plagued by a slew of scandals in his cabinet.

Both the farm minister and a junior minister resigned on Monday, just over a week after Abe reshuffled his cabinet in a bid to revive his popularity following a crushing defeat for his ruling coalition in an upper house election in July.

Four ministers have quit since Abe took office last September, mostly for irregularities in political fund reports, while another cabinet minister committed suicide.

In the latest trouble, media said Environment Minister Ichiro Kamoshita's political fund management group could not provide an adequate explanation for an 69,000 dollars loan from the lawmaker to the group declared in past fund reports.

Kamoshita said there had been mistakes in fund reports but he wanted to check the facts before explaining the matter to the public.

''There is a big gap in what we are saying and what is being reported in the media,'' he told reporters.

Abe said there had been a mistake in the records but indicated that he had no plans to fire Kamoshita, Kyodo news agency reported. Abe has come under fire in the past for protecting ministers when they become embroiled in scandals.

The string of scandals is likely to weigh on Abe's already sagging support, which saw a slight rebound after he revamped the cabinet, and to heighten political uncertainty, which could hurt financial markets.

Stock market players have said if another minister were forced to quit, foreign investors might decide to turn away from the Japanese market.

While the opposition has stepped up calls for Abe to resign, political analysts have said the 52-year-old leader was likely to stay on in the absence of a rival who wants to take over the job now.

On Monday, the farm minister resigned over illegal dealings at a farmers' group he headed, and a junior minister also quit for fudging financial reports.

Abe's first cabinet was hit by scandals and gaffes that resulted in a disastrous defeat for the ruling bloc in a July 29 upper house election, in which it lost its majority.

No election for the more powerful lower house, where the ruling camp still has a huge majority, need be held until 2009, but political analysts have said deadlock in a divided parliament could force a snap poll.

Abe's government faces a tough time enacting laws in a parliament session starting next Monday, including one to extend a naval mission in support of U.S.-led operations in Afghanistan, as the opposition can use its upper house majority to delay legislation.

Support rates for Abe, who took power a year ago pledging to revise Japan's pacifist constitution and boost its global security profile, rebounded to around 40 per cent in some surveys after he unveiled his new cabinet, a lineup full of political veterans, on August 27.

REUTERS CS HS1027