Japan’s ruling LDP to ban faction fundraisers in wake of slush fund scandal

TOKYO — Japan’s ruling Liberal Democratic Party (LDP) has decided to include a ban on political fundraising parties by internal factions in a report drafted in the wake of a slush funds scandal, sources revealed on Jan. 21.

The interim report by the LDP’s political reform headquarters will also include a ban on LDP factions recommending figures for Cabinet and party leadership reshuffles, according to sources close to the government and LDP.

The LDP political reform headquarters is set to release the interim report ahead of the ordinary Diet session on Jan. 26, and plans to obtain approval for the proposed reforms at a Jan. 25 LDP General Council meeting.

Prime Minister Fumio Kishida intends to effectively dissolve LDP factions by setting new rules covering not only the existing factions but also policy groups expected to be formed in the future.

A senior Kishida administration official said, “Factions must not intervene in matters involving money and leadership or government posts. We will create a situation that will not raise suspicions among the public.”

For Cabinet and LDP leadership shakeups, it has become customary to carry out personnel changes in accordance with each faction’s intentions and size. Under the Kishida government, faction leaders conveyed their requests for the new Cabinet lineup by mainly citing the names of lawmakers on the waiting list for ministerial roles, such as House of Representatives members serving their fifth or higher term and House of Councillors legislators on at least their third term. When it comes to state ministers and parliamentary vice-ministers, each faction’s secretary-general and other members draw up a list of would-be ministers by interviewing junior and mid-ranking lawmakers about their requests. The chief Cabinet secretary and others then coordinate the posts.

Under the draft reform plan, personnel affairs based on LDP factions’ recommendations will be prohibited, and proposals have emerged to coordinate personnel matters through a “personnel affairs bureau” to be newly set up within the party.

Revenues from political fundraising parties make up some 80% of LDP factions’ income. Using the funds as resources, the factions have been financially supporting the political activities of member lawmakers by providing them with money in the form of “ice fees” in summer and “rice cake fees” in winter. However, the scandal has revealed that factions’ fundraising parties were used to raise slush funds. The LDP intends to include a ban on such parties. If it goes into effect, the factions’ unifying force and influence are expected to wane.

Of the LDP’s six factions, the Kishida faction led by Prime Minister Kishida, the Nikai faction headed by party heavyweight Toshihiro Nikai and the Abe faction previously helmed by former Prime Minister Shinzo Abe have decided to disband. Meanwhile, LDP Vice President Taro Aso has told the prime minister that he would keep his faction — the second largest with 56 members — alive. The third largest, 53-strong Motegi faction led by LDP Secretary-General Toshimitsu Motegi and the sixth largest, eight-member Moriyama faction headed by LDP General Council chief Hiroshi Moriyama will discuss their fate within the groups moving forward.

Kishida intends to leave the decision to dissolve or maintain factions to each group, telling aides, “It doesn’t matter whether to break up factions or not. All members will engage in activities while abiding by new rules.”

Meanwhile, senior ruling and opposition party officials discussed the issue of money and politics on a show aired by public broadcaster NHK on Jan. 21. Motegi pointed out that faction fundraising parties won’t continue as they have been. He also referred to stepping up penalties under the Political Funds Control Act to prevent a recurrence of the problem, saying, “A system that makes politicians accountable must be created,” hinting at support of legal revision.

Katsuya Okada, secretary-general of the main opposition Constitutional Democratic Party of Japan, spoke of “policy activity expenses” distributed to politicians by their parties, saying, “It remains utterly unclear what those funds are spent on. It is quite murky,” and called for a ban on the payments.

Motegi responded, “If the usage of the parties’ political funds is to be considered and disclosed, we should discuss the issues, including public subsidies to political parties.”

(Japanese original by Yuki Takahashi, Shun Kawaguchi and Tsumuki Nakamura, Political News Department)