Secretary to lawmaker of Japan's LDP to be indicted over fund scandal
The move marks the first time that prosecutors have decided to pursue a criminal case, following a prosecution review panel decision, related to the Liberal Democratic Party slush fund scandal, reflecting persisting public frustration over the issue.
Hagiuda was minister for economy and trade, among other responsibilities, under former Prime Minister Fumio Kishida, and minister for education under Kishida's predecessor Yoshihide Suga. He has not been included in Prime Minister Shigeru Ishiba's Cabinet.
The secretary was not indicted in 2024, with prosecutors granting a stay of prosecution. In June, however, a Tokyo committee for the inquest of prosecution ruled the aide should be indicted. Prosecutors now plan to issue a summary indictment.
A summary indictment allows prosecutors to seek a fine through written procedures without a formal trial. If the secretary does not consent, prosecutors are expected to file a regular indictment and request a public trial without detaining the individual.
The omitted funds totaled 27.28 million yen over five years through 2022, according to the LDP. About 19.52 million yen from 2020 to 2022 was subject to prosecution under the political funds control law, as amounts prior to 2020 were beyond the statute of limitations.
The prosecution review panel pointed to the secretary's repeated misconduct and destruction of receipts, calling the case particularly egregious. It warned that failure to indict may encourage others to engage in similar conduct in the future.
The LDP, which has been in power for much of the time since 1955, has come under intense scrutiny after some of its now-defunct factions, such as one headed by the late Prime Minister Shinzo Abe, failed to report income from fundraising events and amassed slush funds.
Hagiuda, also a former LDP policy chief, was known as a confidant of Abe, who once led the party's largest faction that was influential in selecting prime ministers. Abe, Japan's longest-serving premier, was assassinated in 2022 during a campaign speech.
Since the surfacing of the slush funds scandal in late 2023, public trust in the LDP has plunged, taking a heavy toll on the party even in recent elections. Over the past year, the LDP-led ruling coalition lost its majority in both chambers of parliament.
In May 2024, prosecutors decided not to indict Hagiuda, but the case was sent for review. The panel later ruled the non-indictment appropriate, citing a lack of evidence.
In October's House of Representatives election, he ran as an independent and won, although the LDP did not endorse him due to his involvement in the scandal.
Hagiuda was again endorsed by the LDP following his successful reelection. After the party's major setback in the July 20 House of Councillors election, he has been among the veteran lawmakers urging Ishiba to step down.
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