The Tokyo district public prosecutors’ office has made its first arrest in a financial scandal that has plagued Japan’s ruling party. Yoshitaka Ikeda, a former vice-education minister, was arrested on suspicion of failing to report cash he received from fundraising events organized through his faction in Prime Minister Fumio Kishida’s Liberal Democratic party [LDP].
Last month, Kishida’s popularity suffered a further blow when LDP politicians were accused of systematically failing to report around ¥600m in funds, potentially violating campaign and election laws. The majority of the politicians under investigation belong to the party’s largest faction, which was once led by the former prime minister Shinzō Abe.
The money in question, which was not declared to tax authorities, is believed to have been funneled into slush funds. Ikeda is suspected of not reporting over ¥48m from the sale of tickets for fundraising parties organized by the Abe faction. His policy secretary, Kazuhiro Kakinuma, was also arrested for allegedly colluding with Ikeda to falsify reports.
Kishida, who is already grappling with a cost-of-living crisis, described Ikeda’s arrest as “extremely regrettable” and plans to form a panel of experts to strengthen fundraising regulations. His approval ratings have dropped below 20% – the lowest for any Japanese prime minister in more than a decade. The scandal has led to speculation about the LDP’s electoral prospects, with an election for the presidency of the LDP looming in nine months.
While it is unclear how the scandal will affect the LDP’s electoral prospects, the party does not face voters in a general election until 2025.