Japan - December 2023

In December 2023, Japan’s ruling Liberal Democratic Party (LDP) became embroiled in what analysts describe is the worst Japanese fundraising scandal in decades. Prosecutors are investigating allegations that LDP faction members failed to report hundreds of millions of yen in political funds raised at fundraising parties over the past five years, and that the extra revenue may have been pocketed by lawmakers. The scandal casts a shadow over Japan’s entrenched political faction system, characterized by institutionalized parties within parties with formal membership structures. Prosecutors raided the headquarters of two LDP factions associated with the late Prime Minister Shinzo Abe and former Secretary-General Toshihiro Nikai on 19 December. In response, four cabinet ministers from LDP have resigned, with Prime Minister Fumio Kishida stepping down as head of his faction in a bid to restore public trust. The failure to record these funds in official statements is said to violate the country’s political funding laws.

Sources: Japan Times (1), Japan Times (2), Reuters, East Asia Forum, NPR, The Economist