30-06-2025
Editorial: Japan's LDP has breached the public trust with corporate donations Diet dodge
The ruling Liberal Democratic Party (LDP)'s unwillingness to take responsibility and measures over the money in politics issue is tantamount to a breach of public trust.
The Diet did not revise the Political Funds Control Act regarding the treatment of corporate and organizational donations during the ordinary session that closed in late June. This was because the LDP refused to accede to the Constitutional Democratic Party of Japan and other opposition parties' demands that these donations be banned in principle, insisting instead that they continue.
The bills respectively submitted by both sides have been carried over for further discussions, with no prospect they will be passed.
The LDP-sponsored bill is designed to boost the transparency of corporate and organizational donations while retaining the system. Under the bill, the names of companies that donated upward of 10 million yen (approx. $69,000) a year will be released alongside their amounts. However, just 5% or so of the LDP's branches will be required to make such a disclosure, leaving an enormous loophole.
In the first instance, donations to political parties by specific companies and organizations could distort policy. In the "Heisei-era political reform" about 30 years ago, it was envisaged that such donations would be banned after five years, but successive LDP administrations have shelved the issue.
In the wake of the LDP factions' slush fund scandal, the need for reviewing those donations was once again pointed out, but the Shigeru Ishiba administration has repeatedly postponed a conclusion since its inauguration last autumn. Amid strong resistance within the LDP, Prime Minister and party chief Ishiba stopped short of exercising his leadership by drastically reforming the system.
The issue of political funds concerns the management and governance of all political parties. Essentially, reform must be carried forward based at least on an agreement among the largest parties in the ruling and opposition camps. However, the LDP did not even agree to set a deadline for reaching consensus with the opposition.
The responsibility of Komeito, the LDP's junior ruling coalition partner, and the Democratic Party for the People (DPFP) is also grave as they have the de facto deciding vote under the minority government. Even though the two parties had called for stringent regulations for corporate and organizational donations, they changed course after negotiations with the LDP led to a move to allow such donations on condition that political funding reports be submitted online.
While Komeito and the DPFP claim that digitizing the process will make it easier to check political funds, it will only end up preserving conventional donations. After the parties faced a public backlash for snuggling up to the LDP, they even stopped trying to get involved in drafting the bill.
In the recent Tokyo Metropolitan Assembly election, considered a prelude to the July House of Councillors race, the LDP suffered a major setback, with the slush fund scandal hitting its faction in the assembly.
If the LDP is to keep turning its back on moving to ban corporate and organizational donations, it will have to pay even a higher electoral bill. The party should be aware of the harsh gaze cast by voters.
