Kishida Considers Dissolution of Kishida Faction Amid LDP Faction Slush Fund Scandal

"If It Helps Restore Public Trust, We Must Consider It"
Revealed While Meeting Reporters at the Prime Minister's Residence

Japanese Prime Minister Fumio Kishida announced on the 18th that he is considering dissolving the faction he led, the "Kochi Policy Research Association (commonly known as the Kishida faction)," in relation to the ruling Liberal Democratic Party's (LDP) faction slush fund scandal. The Kishida faction is the fourth largest faction within the LDP, with 47 affiliated lawmakers.

Meeting with reporters at the Prime Minister's Official Residence that evening, Prime Minister Kishida said, "If it helps restore the trust of the people, we must consider such measures."

Japanese Prime Minister Fumio Kishida
Photo by Yonhap News

This statement appears to be a move to overcome the crisis caused by the slush fund issue, following reports that the Tokyo District Public Prosecutors Office's Special Investigation Division, which is investigating the LDP faction slush fund scandal, has decided to indict the former accountant of the Kishida faction.

After the LDP faction slush fund scandal surfaced, Prime Minister Kishida pledged to restore political trust and announced on the 7th of last month that he would withdraw from the Kishida faction, where he serves as chairman, during his tenure as prime minister.

When asked whether he plans to demand the dissolution of other factions as well, Kishida avoided a specific answer, saying, "First, we will think about what we need to do to restore trust."

The Asahi Shimbun reported that the Tokyo District Public Prosecutors Office's Special Investigation Division has decided to indict the former accountant of the Kishida faction. According to the report, the accountant in charge of the Kishida faction's finances from 2018 to 2020 failed to record approximately 20 million yen (about 180 million won) of unclear funds from party ticket sellers during political fundraising events (parties) in the faction's political funds income and expenditure report.

It is reported that the accountant admitted this during the prosecution investigation and explained that the funds were used for faction operating expenses. The Tokyo District Public Prosecutors Office is considering summary prosecution with a fine against this accountant.

In response, the LDP has established a Political Reform Headquarters within the party to discuss measures to prevent recurrence. It is reported that they are discussing revising the Political Funds Regulation Act to strengthen penalties for members of the National Diet. Currently, penalties for false entries in political funds income and expenditure reports apply only to accountants, and it is difficult to hold lawmakers responsible without concrete evidence of conspiracy or instructions. The proposed revision would allow for joint responsibility, including fines or restrictions on eligibility for election, depending on the case.