Photo/Illutration Prime Minister Fumio Kishida, center, along with newly appointed Cabinet members, including Chief Cabinet Secretary Yoshimasa Hayashi, second from right, at the prime minister's office on Dec. 14 (The Asahi Shimbun)

Public trust in politics has taken another hit from the snowballing money scandal engulfing the largest ruling party faction, which supported Shinzo Abe during his seven-year, eight-month tenure as prime minister.

This political crisis represents a defining moment not only for Prime Minister Fumio Kishida, who has depended heavily on the Abe faction to run the government, but also for Japanese politics as a whole.

Fixing this situation requires much more than simple makeshift personnel changes.

We urge Kishida to stop thinking about how to save his own political skin or how to avoid making heavyweights in the Liberal Democratic Party unhappy. He should focus on restoring political trust by doing whatever needs to be done, even at the risk of his own political career.

REMOVING THE ROT

On Dec. 14, Kishida carried out a radical personnel reshuffle involving members of the Abe faction, which is suspected of systematically creating a slush fund through its fund-raising parties.

Four Cabinet members--Chief Cabinet Secretary Hirokazu Matsuno, the internal affairs minister, the economy minister and the agriculture minister--were forced to step down.

Five vice ministers of the Abe faction were replaced.

Among LDP executives, Koichi Hagiuda, chairman of the party’s Policy Research Council, Tsuyoshi Takagi, chairman of the LDP Diet Affairs Committee, and Hiroshige Seko, secretary-general of the party’s Upper House caucus, submitted their resignations.

The total overhaul of the administration’s core structure casts doubt on the legitimacy of the current government.

Despite this government reset, Kishida did not hold a news conference. He only briefly explained his decision to the media in a standing conversation.

At a Dec. 13 news conference, following the closure of the extraordinary Diet session, Kishida used some fiery rhetoric.

“I will lead the charge in completely reforming the LDP’s culture” and “I will tackle (this crisis) like a ball of fire.”

Despite these strong words, his determination is not palpable.

Before his resignation, Hiroyuki Miyazawa, vice defense minister, revealed that he was instructed by the Abe faction not to enter money he received from the faction’s slush fund as income in his political fund reports.

He also said he was told by the faction’s leadership not to talk about the matter.

Familiar excuses to dodge questions, like “we are still scrutinizing the facts,” are unacceptable.

As LDP president, Kishida should instruct all party factions and their members to disclose the flow of funds related to their fund-raising parties.

The Special Investigation Department of the Tokyo District Public Prosecutors Office is looking into the scandal. Instead of taking a passive attitude of waiting to see how the investigation unfolds, Kishida must take proactive actions to ensure the LDP cleans up its act to revive his moribund premiership.

CONFRONT EVILS OF FACTION POLITICS

The Abe faction is not the only group accused of failing to report income related to fund-raising parties. A criminal complaint has been filed against five factions, including the one recently led by Kishida but excluding the Moriyama faction, the smallest in the LDP.

This scandal again underscores the outdated culture of the LDP’s faction-driven politics, a deep-seated tradition dating back to 1955.

LDP factions wielded huge political clout within the party when multiple party candidates competed in Lower House electoral districts, which each used to have about three to five seats.

However, political reforms of the 1990s introduced a new electoral system that combined single-seat districts with proportional representation, and only one candidate from each party could run in a district.

The power of the LDP’s executive lineup, which decides on the party’s official candidates, was enhanced, delivering a blow to the relevance of the factions.

Even so, factions still play a central role in certain party operations, including personnel matters, information sharing, and developing rookie lawmakers.

If these functions are the main factor behind the shady political funding, it is hardly surprising that the people, already suffering from rising prices and an expected tax hike to finance wider defense spending, harbor doubts about the very existence of factions.

The Abe faction’s slush fund operations are believed to have been large in scale and systematic. It is vital to clarify who initiated this scheme and for what purpose.

If distrust in politics intensifies, the government’s basic ability to develop and execute policies will be undermined.

If Kishida intends to “lead the charge” for party reform, he must demonstrate effective leadership in clarifying all of the allegations.

FUNDING TRANSPARENCY

Some political pundits refer to the faction-related scandal as the “Reiwa Era’s Recruit scandal,” referring to the corruption case that came to light in 1988 and rocked the Japanese political community.

The Recruit scandal pushed distrust in politics to a new high, and the LDP the following year decided on a “political reform outline.”

This radical outline included major changes in the election system and a party overhaul featuring the dismantling of factions. The plan also promised to ensure greater transparency and fairness in political funding by publicizing revenues and expenditures.

The outline included disclosure of assets of Diet members and revisions to the standards for reporting donations.

Subsequently, the political party subsidy system funded by tax money was established, while corporate and organizational donations to individual politicians were banned. Essentially, legal contributions were limited to political parties and their branches.

However, the method for businesses and other organizations to provide funds to factions or individual politicians through purchases of fund-raising party tickets was preserved.

Since fund-raisers involve cost-incurring services, such as supplying food and drink, they are treated differently from straightforward donations. But the proceeds from such events can be substantial if expenses are kept low. Some ticket buyers do not actually attend the events.

The names and amounts of those who pay more than 200,000 yen for party tickets must be listed in political fund reports. The requirement is also in place for donations of over 50,000 yen.

Because of the lower disclosure and reporting standards, fund-raising parties have long been criticized as breeding grounds for slush funds.

The Political Fund Control Law is designed to ensure fairness in politics by subjecting the flow of funds to the “constant scrutiny and criticism” of the public.

Are we now at a moment to realize true transparency in political funding without loopholes? The crisis will sorely test the LDP’s ability to cleanse itself of all corrupt practices and shady dealings.

--The Asahi Shimbun, Dec. 15