Japan's farm minister has decided to resign over illegal dealings at a farmers' group he headed, Kyodo news agency reported yesterday, a blow to Prime Minister Shinzo Abe less than a week after he revamped his Cabinet.

Abe's first Cabinet was plagued by scandals and gaffes and the 52-year-old conservative leader named a new line-up last Monday to try to revive public support after the ruling coalition suffered a disastrous defeat in a July 29 election that gave the opposition a majority in parliament's upper house.


But Agriculture Minister Takehiko Endo admitted on Saturday that a farmers' aid group he headed had illegally taken 1.15 million yen (US$9,900) from the state and that he had failed to disclose this to the prime minister before his appointment.

Kyodo quoted an unidentified source in the ruling Liberal Democratic Party (LDP) as saying that Endo had decided to quit.

Abe's first appointee to the farm portfolio committed suicide over a separate scandal. The second was fired over reports of discrepancies in his political funding records.

Two other ministers in Abe's first cabinet, which was formed a year ago, were also forced to resign for gaffes or scandals.

Abe's public support ratings rebounded to around 40 percent according to some media surveys after he named the new Cabinet packed with political veterans.

But doubts about his leadership capability remain. Analysts have said revelations of fresh misdeeds could end the honeymoon.

Endo apologized on Saturday, but said he did not intend to resign. The farmers' group, in his constituency in northern Japan, has not returned the money to state coffers.

Opposition party leaders earlier called on Endo to step down. "He should first fulfill his responsibility to explain, and then he should resign," Mizuho Fukushima, head of the tiny opposition Social Democratic Party, told NHK television.

"If he does not, we will pursue this with a censure motion."

Opposition parties have the votes to pass a censure motion in the upper house. The motion would not be binding, but would be a major embarrassment and would put enough pressure on Endo to resign.

Naoto Kan, a senior executive of the main opposition Democratic Party, also criticized Endo's actions and threatened to call him to testify in parliament.