An operator of a nationalist school at the center of a government-linked land scandal has withdrawn its application for approval to open a new elementary school in Japan's Osaka Prefecture, local media reported Friday.
According to local officials, the operator has filed its request to withdraw its application to open the new elementary school and said that its would-be head, Yasunori Kagoike, will step down.
Moritomo Gakuen, which operates the Tsukamoto kindergarten, came under the spotlight most recently for acquiring a piece of state-owned land with a fraction of its appraisal value.
The operator, according to local reports, submitted three different cost estimates to the government for building the school and local media also said that Kagoike's resume contains false information.
Kagoike purportedly planned to build a new elementary school on the state-owned land, with the school to be named after Prime Minister Shinzo Abe, and to have his wife Akie as its honorary principle.
Both the prime minister and his wife have markedly distanced themselves from the school and its operator, and Finance Minister Taro Aso said Friday that the government will likely buy back the land because it is stipulated in the contract.
Moritomo Gakuen initially bought the 8,770-square-meter piece of state-owned land last June in Toyonaka, Osaka Prefecture, for 134 million yen (1.18 million U.S. dollars), which is equivalent to just 14 percent of its appraisal price.
Opposition parties had brought the issue to light in parliament, with the controversial land deal coming on the heels of revelations that Tsukamoto kindergarten had been involved in hate speech incidents targeting Koreans and Chinese.
The kindergarten was already known for its students singing Japan's national anthem every morning in front of the country's flag and reciting the Imperial Rescript on Education, which since 1890 demands devotion to the emperor, sacrifice for the country and promotes militaristic education.
The rescript was abolished after World War II, but reintroduced 15 years ago by Tsukamoto kindergarten, the walls of which are lined by historical pictures of the imperial family to which the students bow to as they pass in the corridor.
Along with the rescript and other such "cultural" and historical instruction, the school has been accused of fostering nationalism.
