Donations Mostly Go to LDP

Ministry for Internal Affairs and Communications released political funds reports for 2023. The Liberal Democratic Party collected large amount of funds from private companies and organizations. Although the opposition parties demand abolition of such donations in the discussion over political reform, the report disclosed how the LDP has been dependent on the system for siphoning political funds.

The LDP has an organization called People’s Political Association (PPA), which accepts donations from companies. According to the report, PPA received 240 million yen from private companies or organizations in 2023. Top donator was Japan Automobile Manufacturers Association, which gave the LDP 78 million yen, followed by Japan Electrical Manufacturers’ Association and Japan Iron and Steel Federation.

 

The private company which made the biggest donation to the LDP was Sumitomo Chemical and Toyota Motor Corporation with 50 million yen each. Sumitomo Chemical is the company which chairman is the chairman of Japan Business Federation (Keidanren), Masakazu Tokura. Toyota, as an exporter, has been receiving great amount of benefit from politics led by the LDP, represented by cheap yen policy since Shinzo Abe administration.

 

Major corporations in Japan are on the list of main donators for PPA. This is a traditional system of connection between business and politics in Japan. It is necessary for corporations to help political activities of the leading party in order to achieve benefit from economic policies of the government.

 

The leading opposition party, Constitutional Democratic Party, argues that the connection between big businesses and the LDP may distort politics in Japan. However, the Democratic Party for the People, which started policy talks with the LDP, approve donations from private companies and organizations as necessary to promote politics.

 

Among the factions in the LDP, Aso faction reported the biggest amount of fund for 2023, which was 360 million yen. Former Abe faction, which had been accused with secret fund distributed to the members, collected 325 million yen. Nikai faction followed those two with income of 290 million yen, as former Kisshida faction did with 222 million yen and former Motegi faction with 211 million yen. Main source of the income of those factions was fundraising party.

 

Although every Cabinet basically refrains from having fundraising parties, twelve ministers of Kishida Cabinet held fundraising parties, each of which income exceeded 10 million yen. Top minister in the amount of income from fundraising parties was Prime Minister Kishida with 131 million yen for six parties in 2023. Chief Cabinet Secretary, Yoshimasa Hayashi, who was appointed to the same post in current Ishiba Cabinet, received 59 million yen through three fundraising parties.

 

The buyers of ticket for those fundraising parties are private companies. Prime Minister Ishiba did not refer to abolition of donation from private companies or organizations in his policy speech to the Diet, indicating cruciality of those donations.

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