Japan’s PM accused of fund scandal

Japanese Prime Minister Sanae Takaichi is confronting renewed political turmoil as a formal criminal complaint alleges her violation of political funding regulations. The allegations center on a 10 million yen ($64,400) donation received by Takaichi’s local Liberal Democratic Party (LDP) chapter in Nara prefecture from a corporate entity in August 2024, substantially exceeding the legal limit of 7.5 million yen for donors of that classification.

Constitutional law professor Hiroshi Kamiwaki of Kobe Gakuin University filed the complaint on Thursday, marking another escalation in the ongoing financial scandal plaguing Japan’s ruling party. Simultaneously, Defense Minister Shinjiro Koizumi faces parallel allegations regarding his Kanagawa prefecture LDP chapter’s acceptance of a similarly excessive corporate donation.

Both political chapters claim to have returned the disputed funds, with Takaichi’s representatives attributing the violation to a ‘misjudgment’ of the donor’s size classification according to Kyodo News. These developments occur against the backdrop of the LDP’s protracted slush fund scandal initially uncovered in 2023, where party factions allegedly instructed lawmakers to sell fundraising tickets beyond assigned quotas without proper financial reporting.

The controversy has directly impacted Takaichi’s administration, with seven senior officials appointed since her October assumption of office already connected to the scandal. Critics argue the Prime Minister has demonstrated ambiguous commitment to substantive reform, particularly following her November 26 suggestion that reducing Diet seats might preferable to tightening corporate donation restrictions.

Opposition leaders have expressed skepticism regarding Takaichi’s reform intentions. Komeito party leader Tetsuo Saito noted ‘uncertainty about her commitment to political reform,’ while Constitutional Democratic Party senator Kiyomi Tsujimoto characterized Takaichi’s ascent as facilitated by the resurgence of politicians previously implicated in ‘black money’ controversies.

The Prime Minister has subsequently clarified her parliamentary remarks, emphasizing that both campaign finance system improvements and legislative seat reduction constitute equally important aspects of ‘self-reform.’ However, scrutiny extends beyond these allegations to Takaichi’s substantial campaign expenditures, which reportedly reached 83.84 million yen for publicity during the 2024 LDP presidential race—dramatically exceeding opponents’ spending levels.

This developing situation continues to challenge the stability of Japan’s political leadership while raising fundamental questions about accountability and transparency within the nation’s campaign finance architecture.