A Liberal Democratic Party chapter led by economic revitalization minister Toshimitsu Motegi received a donation in 2015 from a company subsidized by the state, Kyodo News learned Thursday.

Motegi, who assumed his post in a Cabinet reshuffle earlier this month, and architectural company Nikken Sekkei Ltd. have denied any wrongdoing, saying the donation fell under an exception granted by the Political Funds Control Law that bans companies from making political donations within a year of receiving state subsidies.

The exception is applied when subsidies do not help to raise profits at recipient companies.