Prime Minister apologizes for scandal over lost pension records

TOKYO (AP) -- Prime Minister Yasuo Fukuda apologized Friday for a growing scandal over millions of lost pension records and promised to deliver policies focusing on consumers and everyday people.

The government has previously acknowledged losing track of more than 50 million pension records in a scandal that damaged the ruling party, playing a role in its loss of control of parliament's upper house in nationwide elections in July.

"The political responsibility is heavy," Fukuda said during a nationally televised New Year's news conference. "I offer my apologies."

Japan had long enjoyed what was widely seen as relatively solid government-backed social security system. But people were stunned to learn early last year that bureaucrats had kept shoddy records, many claims were erroneously rejected and millions of records were missing or incorrect.

Fukuda's ruling Liberal Democratic Party is expected to face an uphill battle when the Diet resumes later this month because of the public anger over the pension scandal.

Standing in coattails next to a sculpted bonsai tree, Fukuda promised to fix the pension mess by carefully going over the problems involved, one by one.

"The credibility of our pension system is at stake," he said at the news conference.

He also promised to take the lead in passing a contentious bill for resuming Japan's naval operations near Afghanistan -- a mission the ruling party sees as critical for upholding Japan's relations with its most important ally, the United States, in the global fight against terrorism.

The bill is unpopular with Japanese, who tend to be pacifist because of the bitter memories of Japan's World War II defeat, and fear getting involved in overseas military efforts.

The opposition has threatened to block the bill, although the ruling party can force through the legislation because of its coalition majority in the more powerful House of Representatives. However, this might be unpopular among voters in a country that favors friendly compromises.

Japan's Indian Ocean naval mission provided logistical support for six years, supplying fuel to U.S. and other coalition warships involved in the Afghan conflict. The mission was halted in November amid opposition protests -- a major blow to Fukuda.

Fukuda has been in office for just three months, replacing his predecessor Shinzo Abe. The Liberal Democrats have ruled nearly continuously for half a century. But their grip on power has been eroded by drastic economic reforms pushed by Prime Minister Junichiro Koizumi, who had enjoyed rock-star-like popularity for more than five years until his term ended in September.

Politics here has long been dominated by old-style pork-barrel benefits doled out to construction and farming blocs. The pork dwindled with the reforms, and voters are slowly starting to elect politicians based on their backgrounds and policies.

Fukuda acknowledged not all had gone well under his leadership but promised change.

"What must be tackled has become clear," he said.