Photo/Illutration Liberal Democratic Party parliamentary group members in the Tokyo metropolitan assembly apologize over the scandal of unreported political funding on Jan. 23. (Natsuno Otahara)

The Liberal Democratic Party’s parliamentary group in the Tokyo metropolitan assembly said on Jan. 23 that more than half of its sitting members failed to report millions of yen raised from political fund-raising events.

The group's internal investigation found that 26 current and former members did not pay around 29 million yen ($186,800) from ticket sale revenues exceeding their assigned quotas for 2019 and 2022 fund-raising parties to the LDP group and did not report these funds in political funding reports.

Of the 26 members, 16 are sitting Tokyo assembly members. The LDP currently holds 30 seats. 

The number of members involved highlights how such misconduct has become an ingrained aspect of the group.

The investigation also found that around 10 million yen from the 2022 fund-raising party revenue was unreported by the LDP parliamentary group and used for operating expenses and personnel costs.

The unreported amounts per individual ranged from 100,000 yen to 3.32 million yen. 

It was also found that Satoshi Udagawa, speaker of the Tokyo metropolitan assembly, failed to report a total of 1.38 million yen. He announced his intention to resign, saying that the issue “has resulted in fostering distrust in politics.”

The 16 sitting members involved took part in a news conference on Jan. 23.

One of them, Masahiko Miyake, told reporters, “Most of the money was used for transportation expenses, but no receipts were kept.”

Other members admitted to “following precedent” but provided no clear explanation about when the practice began or who gave the instructions.

SENIOR MEMBERS EXCLUDED

The scandal hit the Tokyo chapter of the LDP as it was preparing for the metropolitan assembly election in June.

The chapter has decided not to endorse six of the 26 members who had served as group’s secretaries-general.

For the remaining members, the chapter indicated it would grant endorsements if applications are submitted.

On Jan. 17, the Tokyo District Public Prosecutors Office issued a summary indictment to an accountant of the LDP parliamentary group for failing to report some 35 million yen as income in its political fund reports.

He was charged with violating the Political Fund Control Law by submitting falsified reports.

However, prosecutors decided not to build a case against assembly members in the LDP group since each individual’s unreported amounts fell below 30 million yen, the amount generally considered as a threshold for filing charges of falsifying financial reports.

CRITICISM FROM OPPOSITION

The scandal involving the LDP parliamentary group in the Tokyo metropolitan assembly is also expected to impact national politics.

Major opposition parties are intensifying their criticism, and further questioning is expected in the ordinary Diet session that begins on Jan. 24.

“The investigation has not yet progressed,” Kazuhiko Shigetoku, chair of the policy research committee of the main opposition Constitutional Democratic Party of Japan, told reporters on Jan. 23.

“The question is how to uncover the full extent of the scandal, including the response from the LDP headquarters,” he added.

Ryohei Iwatani, secretary-general of Nippon Ishin (Japan Innovation Party), said, “This is a clear example of the LDP’s money-driven and slush fund practices spreading even to a local assembly.”

Meanwhile, LDP Secretary-General Hiroshi Moriyama on Jan. 23 announced the results of a nationwide investigation prompted by the Tokyo metropolitan assembly scandal.

The investigation examined the LDP groups in prefectural assemblies, councils of government ordinance-designated cities and party prefectural chapters.

It confirmed similar practices in 22 organizations, where proceeds from fund-raising events exceeding quotas were distributed to individual members.

However, Moriyama insisted that “all political fund reports have been properly documented” and dismissed any wrongdoing.

(This article was written by Naoki Nakayama, Natsuno Otahara and Haruka Suzuki.)

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