TOKYO -- A key economic minister in the cabinet of unpopular Japanese Prime Minister Yoshiro Mori may face trouble over allegations he accepted funds from a scandal-hit industrial insurance provider.

The news could prove a fresh blow to Mori, who is battling perennially weak support and earlier this month survived a scandal over alleged links to a gangster.

According to Japanese media reports on Sunday, economic planning agency Director General Fukushiro Nukaga reportedly received 15 million yen ($131,100) from the ex-president of industrial insurance provider KSD.

Quoting sources close to KSD, Kyodo news agency said that former KSD president Tadao Koseki, indicted earlier this year for breach of trust and other charges, is alleged to have given the money to Nukaga on two occasions to secure support for a project.

Nukaga served as deputy chief cabinet secretary from October 1999 to July this year in the administrations of Mori and his predecessor, Keizo Obuchi. He was appointed to his current post in a cabinet reshuffle early this month.

In a statement released by his office on Saturday, Nukaga said that one of his secretaries had received the funds but that he was not notified about it until May. He returned the money several days later, the daily newspaper Asahi Shimbun said.

Nukaga added that he was acquainted with Koseki, but denied any pressure or appeals from KSD.

The issue, however, is likely to provide the opposition with fresh ammunition for a new attack on Mori's leadership when the next session of Parliament opens in January.

(Reuter)