The first arrest has been made by Japanese prosecutors in a financial scandal that has affected the ruling party and raised questions about the prime minister, Fumio Kishida’s future.
On Sunday, the Tokyo district public prosecutors’ office announced the arrest of Yoshitaka Ikeda, a former vice-education minister, for allegedly not reporting money he received from fundraising events held by his faction within the Liberal Democratic Party (LDP) led by Kishida.
However, the scandal extends far beyond Ikeda. In the previous month, Kishida, who was already struggling with low approval ratings, saw his popularity decrease even more when LDP members were accused of intentionally not reporting approximately ¥600m (£3.3m) in funds, potentially breaking campaign and election regulations.
The majority of the politicians are affiliated with the largest faction of the party, previously headed by the late prime minister Shinzō Abe who was killed in July 2022.
Based on reports from Japanese media, the funds were not disclosed to tax authorities and were purportedly funneled into secret accounts.
It is believed that Ikeda did not disclose additional money earned from the sale of tickets for fundraising events organized by the Abe faction. According to prosecutors, between 2018 and 2022, he is accused of omitting over ¥48 million from the reports issued by his political funds management organization.
Kazuhiro Kakinuma, Ikeda’s policy secretary, was arrested over the weekend for allegedly colluding with Ikeda to falsify reports.
Kishida, who has faced criticism for his management of the rising cost of living, expressed deep disappointment over Ikeda’s arrest and announced plans to establish a committee of specialists to enhance fundraising regulations.
Kishida stated to reporters on Sunday that it is crucial for us to recognize the severity of the situation and work towards rebuilding public confidence.
Japanese media reports that prosecutors are looking into the unreported political funds of five out of six LDP factions. The Seiwa policy study group, formerly known as the Abe faction, is facing suspicion that a large amount of cash was received and not reported. Among the members, Ikeda is believed to have received a significantly larger sum compared to others, according to sources cited by Kyodo news agency.
Kishida was compelled to dismiss four ministers from the Abe group, including his chief spokesperson and the trade minister, in late 2020. However, the controversy has persisted into the beginning of the New Year, with only nine months remaining before he competes in an election for the presidency of the LDP, which would also make him the prime minister.
Kishida’s approval ratings have dropped to less than 20%, the lowest for a Japanese prime minister in over 10 years. There is growing speculation that this scandal will spark an internal power struggle among LDP members who view Kishida as a liability in elections.
Legislators are allotted a specific number of party tickets to sell, typically valued at ¥200,000 each. They must turn over the profits to their political group, and any excess funds will be reimbursed. While this practice is not against the law, not disclosing the earnings can result in a prison sentence of up to five years or a fine of up to ¥1m. Members of Parliament may face charges if they are found to have collaborated with their staff members.
Although there is uncertainty surrounding Kishida’s future, it is not certain if the scandal will have a significant impact on the LDP’s chances in elections. The party has been in power for most of the time since the 1950s and will not have to face voters in a general election until 2025. Additionally, it is unlikely that the divided opposition will make a strong attempt to gain power.
Source: theguardian.com
