Japan’s LDP Proposes Third-Party Panel to Monitor Use of Political Funds; Draft Does Not Mention Banning Corporate Donations

The Yomiuri Shimbun

21:00 JST, December 4, 2024

The ruling Liberal Democratic Party presented its draft outline on revising the Political Funds Control Law to six other political parties on Wednesday. The draft mainly focused on establishing a third-party committee to monitor how political funds have been spent.

The draft by the LDP calls for abolishing the political activity funds, which are provided to Diet lawmakers by their parties.

Wednesday’s meeting, held at the Diet, was the second one attended by the LDP, its junior coalition partner Komeito and five opposition parties to discuss another revision of the law, following a previous revision earlier this year. The opposition criticized the LDP draft because it does not include a proposal to ban donations from　companies and organizations.

The LDP discussed its idea of creating a third-party panel of experts if the political activity funds are abolished under the envisioned revision. Currently, lawmakers do not have to make public how the funds have been spent.

Under the LDP draft, the committee would decide whether to disclose the names, addresses and other such information regarding expenditures that would be deemed as “requiring special consideration,” such as those involving confidential information related to diplomacy. If the panel finds a further examination of certain expenditures is necessary, it would request that the Committees on Rules and Administration in both chambers of the Diet conduct a joint investigation.

The LDP draft also includes the introduction of a system in which subsidies to parties would be suspended if their lawmakers are indicted of violating the Political Funds Control Law or over any other wrongdoings. It also proposes that foreign nationals and foreign organizations be banned from purchasing fundraising party tickets. The draft also states that it would be mandatory for parties to submit political funds reports online.

Hiroshi Ogushi, executive deputy president of the Constitutional Democratic Party of Japan, criticized the LDP draft for not mentioning a ban on donations from companies and organizations. Ogushi described said it was the “most significant point” for political reform.

“We hope for enthusiastic discussions [at upcoming meetings] so that we won’t have to delay reaching a conclusion until next year,” Ogushi said.

Shinjiro Koizumi, secretary general of the LDP’s Political Reform Headquarters, said his party’s draft does not include such a proposal because “we don’t believe companies and organizations should be banned from making donations in the first place.”

“Thinking that corporate donations are bad while individual donations are good is not our position” Koizumi said.

Wednesday’s meeting, which was open to the media, was also attended by the Japan Innovation Party, the Democratic Party for the People, Reiwa Shinsengumi and the Japanese Communist Party.