Japan PM says not running away from funding scandal

Japanese Prime Minister Yukio Hatoyama speaks at a joint news conference with South Korean President Lee Myung-Bak after a summit at the presidential Blue House in Seoul October 9, 2009.

BEIJING (Reuters) - Japan's new prime minister, Yukio Hatoyama, said late on Friday he was not trying to "run away" from an investigation into a funding scandal that emerged months ago, adding that he would cooperate with prosecutors as needed.

Japanese media said this week prosecutors have begun questioning people incorrectly listed as donors to Hatoyama in his funding reports. Hatoyama has admitted an aide filed false reports, but said the funds came from his personal accounts.

"As authorities are in the middle of investigation, it would be undesirable for me to affect it by comment on the matter," he told reporters in Beijing, where he will hold a trilateral summit with his counterparts from China and South Korea on Saturday.

"It's not like I am running away," he added. "My office and I will fully cooperate and want to wait for authorities to give a clear picture of the whole matter."

Despite Hatoyama's sky-high support rating of over 70 percent after three weeks in office, a media poll showed this week the same percentage of voters are unhappy with the new premier's explanation of the scandal.

Political analysts say the impact of the scandal depends largely on whether further damaging details emerge and whether prosecutors decide to press charges, both of which could at a minimum distract the government from urgent policy matters.

Hatoyama took over as party leader in May after predecessor Ichiro Ozawa resigned over another funding scandal. Fresh revelations in that affair could jolt the party since Ozawa retains hefty clout in his current position as secretary-general.

After his Democratic Party trounced its long-dominant conservative rival, Hatoyama took office on Sept. 16, bringing to power an administration that aims to radically change how the country is run, wean the economy from exports and create more equal ties with close ally Washington.

(Reporting by Yoko Nishikawa; Editing by Sugita Katyal)