Japanese prosecutors make first arrest in ruling party financial scandal – The Guardian

Japan

The Tokyo District Prosecutor's Office says it has arrested Yoshitaka Ikeda, a former deputy education minister

Prosecutors in Japan have made their first arrest in connection with a financial scandal that has engulfed the country's ruling party and sparked speculation about the future of Prime Minister Fumio Kishida.

The Tokyo District Prosecutor's Office said on Sunday it had arrested Yoshitaka Ikeda, a former deputy education minister suspected of failing to report funds he received from fundraisers run by his faction in Kishida's Liberal Democratic Party [LDP].

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However, the scandal extends far beyond Ikeda. Last month, Kishida, already struggling with dismal approval ratings, suffered a further slump in his popularity after the LDP politician was accused of systematically under-reporting funds worth around 600 million yen (£3.3 million). may constitute a violation of campaign and election laws.

Most politicians belong to the party's largest faction, once led by former Prime Minister Shinzō Abe, who was assassinated in July 2022.

According to Japanese media reports, the money, which was not reported to tax authorities, allegedly went into slush funds.

Ikeda is suspected of failing to report additional income from the sale of tickets to fundraising parties organized by the Abe faction. He allegedly excluded more than 48 million yen from his political money management organization's reports between 2018 and 2022, according to prosecutors.

Ikeda's political secretary, Kazuhiro Kakinuma, with whom he is said to have worked to falsify the reports, was also arrested at the weekend.

Kishida, who has been criticized for his handling of the cost of living crisis, called Ikeda's arrest “extremely regrettable” and added that he would form an expert panel this week to tighten fundraising regulations.

“We must have a strong sense of the crisis and strive to regain the public's trust,” Kishida told reporters on Sunday.

According to Japanese media, prosecutors are investigating five of the six LDP factions over unreported political funds. A majority of the 99 members of Abe's faction, now known as the Seiwa Policy Study Group, are suspected of receiving cash that was not on the books, but Ikeda is believed to have received a far larger sum than the others, said the Kyodo News Agency. citing sources.

Kishida was forced to fire four Abe faction ministers late last year, including his top spokesman and the trade minister, but the scandal followed him into the new year, nine months before the LDP presidential election, whose incumbent automatically becomes prime minister.

His approval ratings have fallen below 20% – the lowest of any Japanese prime minister in more than a decade – and speculation is growing that the scandal will spark an internal power struggle led by LDP members who believe Kishida is becoming one has become a burden for voters.

Each MP receives a quota of fundraising tickets, typically worth 200,000 yen each. They send the revenue to their group, and those who exceed their quota receive the excess amount back. Although the practice is not illegal, failure to report income can result in a prison sentence of up to five years or a maximum fine of ¥1 million. Deputies can be charged if they are found to have cooperated with their administrative staff.

While Kishida's future is uncertain, it is unclear whether the scandal will significantly affect the LDP's electoral prospects. The party, which has ruled almost continuously since the mid-1950s, does not have to face voters until a general election in 2025, and few believe the splintered opposition will launch a serious power struggle.

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