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.

“First of all, Mr. Nakajo was reported by ‘Shukan Shincho’ in 2008 for participating in a golf tournament to celebrate the birthday of the head of the designated gang, Goto-gumi which is now dissolved, along with actors and enka singers. Afterwards, he denied knowing who organized it on his blog, but it raises serious doubts about whether he had the qualifications for the Innovation Party to nominate him on the proportional representation list.” (Someone from the variety show industry)

A member of parliament earns approximately 15 million yen per year in salary, with a bonus of around 6 million yen. Additionally, they receive approximately 12 million yen for postage, 7.8 million yen for legislative expenses, and 18 to 24 million yen for staff salaries. This totals to around 60 to 65 million yen in expenses per parliamentarian.

Other perks like unlimited rides on the Shinkansen’s Green Cars and flights are also funded by the national budget. Naturally, all of this comes from our taxes.

It’s unclear when Nakajo lent money to acquaintances, but there’s no indication of any wrongdoing. If he’s still making a profit from interest, it could be seen as using the money he received as a legislator to invest at high interest rates.

On social media and in other places, there’s a comparison to the manga “Yamikin Ushijima-kun,” which is based on illegal financial activities.

“Ushijima Kiyoshi”

Some people on social networking sites made fun of him, calling him “Ushijima Kiyoshi,” 

“Tell me it’s not true!”

From phrases such as say a lie.

“Resign from being a legislator immediately.”

“Don’t underestimate the people!”

Direct criticism is also pouring in. 

Amid rising criticism, on the 7th, Representative Nakajo’s office

“We are not asking for the payment of interest.”

They denied it, stating that they left the interest section of the contract “blank.”

“We are only seeking repayment of the principal amount, and we are not seeking payment of interest.”

And they commented.

In the “Hissatsu Shigotonin” series, Nakajo, portraying “Yujin the Shamisen Player,” has been depicted as eliminating “evil” from the shadows, seeking justice for the common people. However, in the real world, if he were to assume a position of power as a lawmaker and lend money at high interest rates.