Japanese official 'fiddled £1.4m public money'

A former Japanese foreign ministry bureaucrat has reportedly admitted receiving £1.4m of public money to buy souvenirs for officials and fiddling expenses.

Katsutoshi Matsuo, who from 1993 to 1999 was in charge of classified diplomatic funds, was arrested in March on suspicion he misused money earmarked for use by the premiers on overseas trips.

The total amount of state funds allegedly entrusted to Matsuo stands at 1.2bn yen (£6.8m), the nationwide Yomiuri newspaper reports. Matsuo is believed to have bought four race horses and a plush home in Tokyo with the money.

During his tenure, Matsuo used part of the state funds to buy mementos for the premiers and their entourages to hand out to political supporters back home, according to the Yomiuri.

Matsuo's latest admission is likely to embarrass the government, which had earlier said the only expenses the former official exaggerated were for hotel stays, the newspaper said. A Tokyo police spokesman refused to comment on the newspaper report.

Matsuo said he told police that he inflated the cost of the gifts when declaring expenses to the Government, keeping the difference for himself, the newspaper said.

Earlier this year, a Foreign Ministry investigation found that Matsuo diverted hundreds of millions of pounds of an official travel funds to his own bank accounts. He was later dismissed.

After the Foreign Ministry lodged a criminal complaint against Matsuo, Tokyo police began their own investigation into the embezzlement case.