Japan’s LDP panel to seek faction disbandment in event of funds law violation

TOKYO (Kyodo) — A reform panel of Japan’s ruling Liberal Democratic Party will propose introducing a system enabling the party to request a faction to disband if found violating the political funds control law, sources close to the matter said Monday.

In its interim report, expected to be released later this week, the panel will also recommend that the party toughen its penalties on lawmakers in the event of arrest or indictment for violating the same law, according to the sources.

Under the new system, offenders of the law would face party punishment even when their accountants are arrested or indicted, the sources added, as a political funds scandal has rocked the LDP, which has been in power for most of the period since 1955.

The proposals come after some factions within the LDP, including the largest one formerly headed by the late Prime Minister Shinzo Abe and a group that Prime Minister Fumio Kishida led until December, decided last week to dissolve over the scandal.

The LDP has come under intense scrutiny over the fundraising scandal, with allegations that some factions failed to report revenue from fundraising parties over many years. Public outrage has led to a significant decline in approval ratings for Kishida’s Cabinet.

Earlier this month, Kishida, who quit his group in response to the slush funds scandal, launched the internal reform panel to establish rules to enhance the transparency of funds raised by the LDP factions, saying the public views them with “skeptical eyes.”

On Friday, prosecutors indicted a number of accountants and lawmakers from some LDP factions on suspicion of failing to report political funds. However, they did not indict the executives of the groups due to a lack of evidence, despite mounting criticism over the scandal.

House of Representatives member Yaichi Tanigawa, indicted for violating the political funds control law, offered to resign as a lawmaker on Monday, apologizing for benefiting from the slush funds.

Tanigawa, a member of the Abe faction, failed to declare in political funds reports about 43 million yen ($290,000) he had received from the group for five years through 2022. The majority of members of the Abe faction are alleged to have obtained slush fund money.

At a panel meeting on Monday, Kishida said, “It is of utmost importance that each faction and lawmaker show integrity and fulfill their accountability,” as LDP members have remained divided over whether to maintain or disband its groups.

Former Prime Minister Taro Aso appears likely to defy pressure to dissolve his faction, while LDP Secretary General Toshimitsu Motegi said his group will discuss whether it will disband after the interim report is unveiled.

The interim report, meanwhile, is calling for the prohibition of fundraising parties by LDP groups while seeking the digitization of political funding reports, the sources said.