Discussion on Political Donation Restarted

The Liberal Democratic Party (LDP), Komeito and the Constitutional Democratic Party of Japan (CDPJ) embarked ondiscussion for further regulation of political funds including donation from companies and organizations on September 25th. Although it is scheduled that Prime Minister Shigeru Ishiba is going to leave his office in mid-October, the LDP promised that the issue would be succeeded by next LDP president.

Discussion over regulation of donation from companies and organizations has a long history. It was the time of Morihiro Hosokawa administration when the leading coalition by eight parties, including Japan New Party, Japan Socialist Party or Japan Renewal Party, and the LDP agreed on abolishment of donation from companies and organizations to a politician and a political party, on which the LDP was heavily relying.

 

However, the agreement had five-year moratorium to mitigate the impact of prohibiting donation to parties. As five years passed, the LDP regained leading power in the government. The reform of political donation was downgraded in 1999 to the prohibition only for individual politician, leaving loophole for donations to a party and its local branches. Donation to individual politician became possible, because every LDP candidate for single-seat district of House of Representatives presided local branch of the party. Hosokawa and then LDP president, Yohei Kono, admitted that the agreement in 1994 must have been for entire elimination of donation by companies and organizations.

 

Encouraged by criticisms on the slush fund scandal revealed in 2023, five opposition parties, including CDPJ, Japan Innovation Party (Nippon Ishin-no Kai) and Sanseito, submitted a bill to the Diet in March, 2025, which was designated to abolish donation from companies and organizations. On the other hand, the Democratic Party for the People (DPP) offered a helping hand to the LDP by submitting another bill, with Komeito, which would allow receiving the donations with some limits.

 

In fact, the DPP refused joining concerted effort of the opposition parties to abolish the donation, a move which made the bill sponsored by five opposition parties unable to pass the Diet. It encouraged the LDP so much. Denying a consensus built in 1994, Ishiba insisted on maintaining donation from companies and organizations. He argued that every commercial company had a right to participate in political activities.

 

All the candidates of LDP presidential election that selects successor of Ishiba are also reluctant to abolish donation from companies and organizations. They speak with one voice that transparency is needed more than abolishment. They even are negative for regulation of donation to local branches of a party, encouraged by the DPP’s defiance against concerted effort of the opposition parties.

 

It is likely that Ishiba restarted trilateral discussion with Komeito and CDPJ to settle as many issues in his administration as possible before he retires. But the agreement in 1994 will not be implemented as long as the DPP is on the side of the LDP.

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