Kiyoshi Nakajo’s High-Interest Loan Scandal Continues to be Controversial Despite his Denial of Seeking Interest

I wonder how much more trouble they need to cause in society.

Kiyoshi Nakajo, a member of the Japan Innovation Party in the House of Councillors, has been reported to have lent money at high interest rates to acquaintances, raising the possibility of being charged with violations of investment laws.

According to the initial report on the internet version, it’s said that when Nakajo lent 10 million yen in cash to an acquaintance, they agreed on a contract with an “annual interest rate of 60%.” Furthermore, in the May 7th edition of “Weekly Post,” it’s written in more detail, suggesting the possibility that besides this acquaintance who borrowed money, Nakajo might have lent money to others at similarly high interest rates.

“In the case of personal loans, the maximum interest rate is capped at 109.5% per annum, but if loans are extended to multiple individuals, it may be considered as engaging in lending business, and there’s a possibility of violating the Investment Law if the interest rate exceeds 20% per annum. Considering that lawmakers are responsible for legislation, it would be outrageous if they themselves were breaking the law. As representatives of the people, why would they lend money at exorbitant interest rates, causing distress to acquaintances? They should fulfill their responsibility to explain themselves without evasion.” (Journalist from a national newspaper)

Kiyoshi Nakajo was elected for the first time in the July 2022 House of Councillors election. However, at that time, Ichiro Matsui, who was the representative of the “Innovation” party, was not involved.

“I would imagine that lending and borrowing money among acquaintances before becoming a parliamentarian is common, but charging illegal interest rates is unacceptable. If it’s true, Mr. Nakajo should bravely resign.” 

 

The journalist expressed strong criticism.

In just two years, Mr. Nakajo has sparked numerous controversies in Parliament, including issues related to CD promotion, unpaid pension contributions, and accepting tips at karaoke.