Although the ruling Liberal Democratic Party has withheld official endorsements from scandal-hit politicians in the Lower House election, it has pumped millions of yen into the party branches chaired by these “disciplined” candidates.

The Asahi Shimbun learned that the amount sent by LDP headquarters to each of these branches--20 million yen ($131,200)--is the same as the sum distributed to party candidates who are officially endorsed.

The Oct. 27 election is being held as the LDP continues to take heat for a scandal over unreported political funds.

Apparently in hopes of moving on from the scandal, Prime Minister Shigeru Ishiba announced disciplinary action against many LDP members who underreported the funds, including not giving party endorsement to them for the election.

But now, as election day draws nearer, opposition parties are trying to rekindle public anger over the scandal by raising the issue of the payments to the party branches, which was first reported in the Oct. 23 edition of Akahata (red flag) newspaper of the Japanese Communist Party.

“This issue will have a major impact in the final stages of the Lower House election,” said a member of the main opposition Constitutional Democratic Party of Japan.

LDP Secretary-General Hiroshi Moriyama emphasized that the purpose of transferring the funds to the branches was not to help non-endorsed candidates in the Lower House election campaign.

“The payment was made to party branches as an activity fee for expanding party membership,” Moriyama said in a statement released on Oct. 23. “The purpose was to ask the branches to conduct activities to firmly expand the party’s membership as an organization of the LDP. The money was not provided to the candidates.”

According to a “notice of payment” obtained by The Asahi Shimbun, candidates officially endorsed by the LDP were informed on Oct. 9, when the Lower House was dissolved, that they would each receive 20 million yen (5 million yen as an official endorsement fee and 15 million yen for activity expenses).

The funds, from subsidies provided to political parties, were to be transferred to the candidates’ respective party branches, according to the notification, which was written in Moriyama’s name.

Nine of the 12 LDP politicians who were denied party endorsements are running in the election.

Without official party endorsement, candidates lose financing and face restrictions on advertising and TV and radio broadcasts.

But according to a source close to the LDP, 20 million yen was paid as activity expenses to each party branch chaired by the non-endorsed candidates. Even branches headed by the three politicians who are not campaigning received that sum.

For political fund reports, the rule is to list “election-related expenses” and “organizational activity expenses” separately among the expenditures.

Moriyama’s argument is that a party branch’s activities are different from a candidate’s election campaign.

However, there remains some ambiguity on whether rallies and other events held by political party branches are organizational activities or election campaign activities.

The source close to the LDP did not deny a connection between the activities of the branches and the election campaigns.

“Even if it is a party branch chaired by a non-endorsed candidate, it must work to garner proportional representation votes,” the source said.

One of the non-endorsed candidates seeking a Lower House seat acknowledged that money was transferred from the LDP’s headquarters to the party branch.

The candidate said the payment was justified.

“It wouldn’t be right to suddenly withhold the money (from the branch) after all the efforts we have made for the party, such as gaining party members,” the candidate said.

Tomoaki Iwai, a professor emeritus at Nihon University who specializes in political fund issues, said party branches are the de facto “purses” of the branch leaders, so the money transferred to the branches is effectively campaign finance support from the LDP.

“The party is not fielding opposing candidates in electoral districts where the non-endorsed candidates are running.

Instead, the party treats the non-endorsed individuals as if they were officially endorsed candidates by giving them money,” Iwai said.

“This contradicts the party’s explanation that it did not officially endorse them to make them take responsibility for the fund scandal.”

OPPOSITION PARTIES ATTACK

Opposition parties agree that the LDP’s payments to the branches were effectively official endorsement fees.

CDP leader Yoshihiko Noda brought up Ishiba’s “boasts” that the non-endorsements were a “harsh measure.”

“That was all baloney, right?” Noda said at a speech at a rally held in Kita-Kyushu on Oct. 23. “This is not just a ‘nightmarish administration.’ It is a ‘liar administration.’ Let’s strike a hard blow.”

Ishiba has criticized the Democratic Party of Japan’s time in power as “a nightmarish administration.”

Noda used Ishiba’s words to describe the new administration, which is less than a month old.

Noda also told reporters in Fukuoka city, “(The LDP) is trying to create an image that those non-endorsed candidates are fighting with their backs against the wall. But the fact is that the party, behind the scenes, is paying them the same amount as the endorsed candidates. This is a story that deceives voters.”

Junya Ogawa, the CDP secretary-general, told reporters in Shimane Prefecture: “(The LDP) is really making a mockery of the people. It is a fake non-endorsement. A thorough investigation and verification are necessary.”

Akira Koike, leader of the JCP, criticized Moriyama’s statement.

“The explanation that money was given to the branch offices but not to the candidates does not make sense,” Koike told The Asahi Shimbun. “This is a ‘backdoor official endorsement fee’ to the branch heads who are not endorsed.”

Fumitake Fujita, secretary-general of Nippon Ishin (Japan Innovation Party), told reporters in Osaka Prefecture, “It is truly unbelievable if it is true that (the LDP) is giving the same financial support while saying, on the surface, that they are not officially endorsed.”

Yuichiro Tamaki, head of the Democratic Party for the People, told The Asahi Shimbun: “It is the same as handing over an official endorsement fee. The LDP has shown absolutely no remorse for doing this kind of ‘stealth endorsement.’”

Even some members of the LDP voiced confusion and concerns about the latest revelations.

An LDP incumbent officially endorsed by the party said bitterly: “Voters will think that the party is embracing even non-endorsed candidates. Why is the party executive branch dragging down us officially-endorsed candidates who have been working so hard to visit constituencies while facing pressure for the funding scandal?”

A middle-ranking LDP Upper House member said: “This is a big screw-up. The LDP may have given priority to reconciliation within the party, but now the headwind will become even stronger.”

Keiichi Ishii, leader of junior coalition partner Komeito, told reporters in Osaka city, “This is a matter to be explained by the LDP first.”