TOKYO - JAPANESE prosecutors raided a government ministry on Monday over a scandal in which officials allegedly helped companies to abuse a mail discount scheme intended to benefit the disabled.

The raid came a day after authorities arrested the head of the health and welfare ministry's bureau for equal employment, children and families for her alleged role in the fraud scheme.

Television footage showed dozens of dark-suited prosecutors walking into a ministry building. Prosecutors Monday also raided the home of Atsuko Muraki, 53, the bureau's head, Jiji Press reported.

Under the discount scheme, Japan Post charges groups that help disabled people around eight yen (S$0.12) per mail item, far below the regular fee of 120 yen.

Prosecutors allege that in 2004 Ms Muraki and other officials illegally certified a group, formerly called Rin no Kai, for the discounts, which then lent its name to companies that sent out advertising fliers.

Several companies, including electronics retailer Best Denki, have been investigated over the alleged fraud. Group members and ministry, postal and company officials have already been arrested.

Media reports said prosecutors suspected that Ms Muraki and three other arrested officials falsified certification when Ms Muraki was in charge of a section dealing with programmes for the disabled.

Prosecutors are also investigating whether the officials acted under pressure from a member of parliament.

Health, Labour and Welfare Minister Yoichi Masuzoe said Monday he regretted the arrest of Ms Muraki, who has reportedly denied all wrongdoing.

'I am very much disappointed as she is a very capable woman and a great supervisory official,' he said. 'She was a role model for many working women.' -- AFP