Complete Donation Ban Disappears

Prime Minister Shigeru Ishiba told last December that he would conclude the reform of donation from companies and organizations to political entities by the end of March 2025. At the time of mid-March, there are three groups in the Diet over reforming of Political Funds Control Act. While two of them demand regulation on the donation, the Liberal Democratic Party (LDP) rather focuses on disclosure than regulation. There remains no party which upholds complete elimination of donation from companies and organizations. 

A private company can donate to a party, while it cannot do to individual politician. Most companies currently donate to the LDP, possibly expecting a favor from the leading party. The amount of the donation in 2023 was 2.3 billion yen. It was three thousand times more than what the second party, Constitutional Democratic Party of Japan (CDPJ), received (760 thousand yen) in the same year.

 

That is why the LDP is reluctant to regulate the donation from companies and organizations which is mainly in the business community. The CDPJ, with some opposition parties, submitted a bill to regulate the donation last December. The bill excluded certain kind of organizations, including labor unions. Opposing to that loophole, Japan Innovation Party (Nippon Ishin-no Kai) refused to join the bill at the time, arguing that all the organizations should be subject to the regulation.

 

However, Ishin finally joined the group of CDPJ. Ishin found that total elimination of organization’s donation can be violating freedom of political activities. Both parties agreed on setting upper limit of annual donation by a political organization at 60 million yen. An organization can donate to a party as much as 20 million yen. They are going to submit new bill later this month with some other opposition parties including Japan Communist Party and Reiwa Shinsengumi.

 

The Democratic Party for the People (DPP) does not join the opposition group on this issue. While CDPJ and Ishin basically negative in continuing donation of companies and organizations, the DPP hopes to allow donation of private companies. With detailed discussion with LDP’s coalition partner, Komeito, the DPP is going to make a proposal for stricter regulation to the LDP. The LDP has submitted its own bill which disclose the name of donor with annual 10 million yen or more without banning donation.

 

Now, there are three groups on the issue. Hardliners are the group with the CDPJ and Ishin. The DPP and Komeito are in the middle. The LDP is on the softest position on the political donation from private company. However, Prime Minister Shigeru Ishiba is facing harsh criticisms on his careless management of political funds, as seen in distribution of gift certificate to young LDP lawmakers. It is not expectable that LDP bill will easily gain a majority for their bill in both Houses of the Diet.

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