"I trusted the former accountant. It is not fair to say that a politician should not be blamed because it is something his secretary has done," he said at the House of Representatives' Budget Committee session.

Hatoyama also admitted that he signed a document to allow the former accountant of his political funds management body to withdraw the premier's own money, which ended up being reported as political donations to the body.

"I thought he (the former accountant) would be borrowing my money simply because he was running out of money for political activities," he said.

Hatoyama also said he was aware that a politician is not allowed to donate more than 10 million yen in one year.

But more than 10 million yen in Hatoyama's own money could have been transferred to his political funds management body.

The former accountant has already admitted during an investigation by the Tokyo District Public Prosecutors Office that he falsely reported the prime minister's individual funds as donations of less than 50,000 yen, according to sources close to the matter.

Political funds management groups do not have to write down the names of people who donate less than 50,000 yen in each lot.

On the funds issue, Hatoyama said in a press conference on June 30 that the body made false statements in its annual reports over four years from 2005 using the names of various people, including deceased ones, regarding a total of around 22 million yen, and blamed the former accountant for the case.

The investigators have been questioning the former accountant.

"I have not contacted the former accountant and cannot tell what is false or not," Hatoyama told parliament. "Investigations are proceeding and the whole picture will be clarified sometime soon."