Indictment of Secretary for a Leader of Abe Faction

The Special Investigation Division of Tokyo Public Prosecutors Office made a summary indictment against former secretary of a member of House of Representatives, Koichi Hagiuda, with charge of violation of Political Funds Control Act on August 15th. The secretary is suspected to have failed in reporting sales of ticket for fundraising parties, which consists of a typical case in the slush fund scandal of some factions in the Liberal Democratic Party, Hagiuda issued a comment to apologize on the case, refusing to resign as a lawmaker.

The secretary, who had been in charge of managing political funds of Hagiuda, did not report 19.52 million yen of income from the sales of tickets for fundraising parties between 2020 and 2022. The fund was returned from Abe faction, as the reward of ticket sales beyond the quota allocated to each lawmaker. Statute of limitation was applied to 8 million yen between 2018 and 2019.

 

In the investigation of the LDP, it was found that the secretary did not report 27.28 million yen between 2018 and 2022 about the income of LDP branch of Tokyo 24th district, which had been topped by Hagiuda. Although the secretary was accused, the public prosecutors office decided not to indict him.

 

Tokyo 5th Prosecution Reviewing Committee in June decided that the secretary should be indicted, with reasoning that false reports by politicians would not be eliminated, if this case were ignored. The Special Investigation Division changed its decision and went forward to the indictment. On the responsibility of Hagiuda himself, the reviewing committee has already concluded that he should not be indicted.

 

In the LDP slush fund scandal, the public prosecutors drew a line that they would indict the case with 30 million yen of false reporting or more. Hagiuda’s case was about less than 30 million yen. However, management of political funds is a great concern for the people, as shown in the Upper House election in July. the public prosecutors office considered public frustration against the LDP, which is still reluctant to make stricter regulation on political funds or donation from private companies.

 

Hagiuda was one of the powerful leaders in Abe faction, having experienced Chair of Policy Research Council of the LDP. There are some examples in the past of resignation of lawmakers whose secretary was indicted with charge of violating Political Funds Control Act. Some leaders in leading coalition argue that Hagiuda needs to explain more about his own responsibility in the case.

 

The LDP is now divided over Prime Minister Shigeru Ishiba’s responsibility for defeat in the Upper House election. The response from Ishiba side has been that the lawmakers involved in the scandal caused the defeat. Indictment of Hagiuda’s secretary may have an impact on the struggle over Ishiba’s responsibility for the election.

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