Japanese Prime Minister Shinzo Abe addressed a special session of parliament on Monday and denied that he told officials to give preferential treatment to a long-time friend.
Abe is accused of helping Kake Gakuen's educational institution win approval for a veterinary school in a special economic zone. The school, run by a friend of Abe, received land for construction of the school worth about 30 million US dollars for free.
Several opinion polls have indicated Abe's support dipping below 30 percent, the lowest since he took office in 2012.
The scandal might prevent him from becoming Japan's longest-serving prime minister and a third term leader of the ruling Liberal Democratic Party.