The Liberal Democratic Party (LDP) has decided to postpone reforms concerning “politics and money” in light of the factional backroom fund scandal, including the reconsideration of policy activity funds and investigation research publicity staying expenses (formerly known as communication expenses) without the obligation to disclose their usage during the current session of the Diet. The abolition of corporate and organizational donations will also be put on hold.
Multiple party insiders revealed this decision. It has been strongly criticized by public opinion, as faction leader Toshihiro Nikai received ¥5 billion in policy activity funds during his five-year tenure as secretary-general. Opposition parties are also calling for a review, leading to potential difficulties in cross-party negotiations.
In the current Diet session, discussions will focus on three main points instructed by Prime Minister Fumio Kishida: strengthening penalties for individual lawmakers, enhancing external audits, and improving transparency through digitization. A lawmaker involved in negotiations with Komeito stated, “Addressing all points would be impossible within this Diet session.” The LDP has also decided to postpone discussions on the transfer of funds to “other political organizations” with lax disclosure standards for usage criteria, which are being compiled by Komeito.
