Public prosecutors Thursday decided not to indict Democratic Party of Japan Secretary General Ichiro Ozawa over the alleged falsification of political fund reports, saying there was insufficient evidence to convict him. The decision comes as a relief for Mr. Ozawa, Prime Minister Yukio Hatoyama and Cabinet and DPJ members. But Mr. Ozawa cannot entirely escape moral and political responsibility as three of his aides, including Mr. Tomohiro Ishikawa, a former secretary to Mr. Ozawa who is now a DPJ Lower House member, have been indicted.

The three were charged with failing to accurately record the flow of funds when Rikuzankai, Mr. Ozawa's funds management body, borrowed ¥400 million from him and bought a plot of land in Setagaya Ward, Tokyo, on Oct. 29, 2004 for some ¥340 million. Rikuzankai returned the borrowed amount in 2007. Public prosecutors arrested Mr. Ishikawa just before the start of the current Diet session, searched offices of general contractors and questioned Mr. Ozawa twice on a voluntary basis.

There has been a view that the targeting of Mr. Ozawa was arbitrary. If the investigation is to be seen as a struggle between the prosecution and Mr. Ozawa, he appears to have won for now. Mr. Hatoyama and many of DPJ lawmakers support him continuing as the DPJ kingpin.