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Ministers quit as Japan’s PM Fumio Kishida struggles for trust amid fraud scandal

     Dec 14, 2023

Japanese Prime Minister Fumio Kishida is goung through a significant restructuring of his government amid prominent corruption scandal within the ruling party. The scandal has effected in the resignations of several ministers, including close ally and government spokesman Hirokazu Matsuno, who holds the title of Chief Cabinet Secretary.

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Matsuno announced his departure on Thursday, following the prior resignation of Economy and Industry Minister Yasutoshi Nishimura. This shake-up comes as PM Kishida attempt to regain public trust amidst the ongoing fraud scandal. 

Sources from Jiji Press and other Japanese media reported that Internal Affairs Minister Junji Suzuki and Agriculture Minister Ichiro Miyashita will be resigning, along with the dismissal of five deputy ministers. These ministers belong to the influential Abe faction within the ruling Liberal Democratic Party (LDP), which is named after the late Prime Minister Shinzo Abe.

There have been allegations that the faction received approximately 500 million yen ($3.5m) in fundraising proceeds that went missing from party accounts. As a result, Japanese prosecutors have initiated a criminal investigation into the faction.

Due to the controversy surrounding political funds and the impact this has had on public trust in politics, Minister Matsuno announced his resignation during a press conference. He will be replaced by former Foreign Minister Yoshimasa Hayashi, who served in that position until September. 

In an effort to regain control amidst a political scandal within his party, Kishida announced on Wednesday his plans to overhaul his government. He expressed remorse over the deepening distrust in politics and vowed to promptly address the issue. Kishida stated that he would confront the various problems concerning political funding and lead the LDP with unwavering determination to restore the public's confidence. According to NTV, investigators are anticipated to search lawmakers' offices for evidence starting next week. Reports also suggest that they will examine the involvement of other LDP factions, including one previously led by Kishida. 

On Thursday, Nishimura addressed reporters, acknowledging the public's concerns regarding political funds and the resulting lack of trust in the government. With an ongoing investigation, Nishimura expressed a desire to rectify the situation.

In light of the recent scandal, Kishida's public support has plummeted to approximately 23 percent - the lowest since taking office in October 2021, according to a recent NHK poll. The ruling LDP party has also experienced a decline in support.

Despite facing criticism and undergoing two cabinet reshuffles, Kishida is not obliged to hold an election until October 2025. Additionally, the fractured and weakened opposition historically struggles to make significant progress against the LDP.

The Constitutional Democratic Party (CDPJ) led a failed motion of no confidence against Kishida on Wednesday. 

The inability for the LDP to cleanse itself is a concern, expressed Kenta Izumi, the leader of CDPJ. He raised doubts about the party's capability to choose individuals untainted by illicit funds.

Kazuo Shii, the leader of the Japanese Communist Party, described the scandal as a severe and never-ending issue.

Media reports suggest that Matsuno diverted more than 10 million yen ($70,600) from faction fundraising events into a slush fund over the past five years, while Nishimura allegedly retained 1 million yen ($7,000).

While many senior figures mentioned in the media chose to stay silent, Vice Defence Minister Hiroyuki Miyazawa revealed on Wednesday that he was instructed by the Abe faction to exclude his first kickbacks from 2020-2022 in the funds' records. He assumed this practice had been ongoing and legal for years.

Though ordered to keep quiet, Miyazawa felt compelled to speak out and disclosed that he had reportedly accepted a mere 1.4 million yen ($9,800). 

In Japan, it is not against the law to collect funds from party events and provide kickbacks to lawmakers, as long as the transactions are properly recorded in accordance with the political funds law. However, failing to report these payments can result in a prison sentence of up to five years. Despite the severity of this penalty, prosecuting people for not reporting such transfers is challenging as it requires evidence of a clear directive given to an accountant to withhold this information. 

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