Funds scandal: Fumio Kishida becomes first sitting Japan PM to face ethics committee

Fumio Kishida on Thursday became the first Japanese prime minister to appear before a parliamentary ethics committee, as he sought to draw a line under a funding scandal that has hurt his popularity and may delay next year’s budget.

Kishida’s attendance came after weeks of negotiation between the opposition and the ruling Liberal Democratic Party (LDP) regarding the procedural aspects of the hearings, which will investigate the failure of certain LDP factions to report substantial amounts of yen from fundraising events.

The opposition insisted on a comprehensive public hearing involving five key figures implicated in the scandal, while the LDP advocated for a closed-door session.

“As the LDP leader, I apologise from my heart that this fundraising issue has raised suspicion and caused distrust in politics among the people,” Reuters quoted Kishida as saying in opening remarks.

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Kishida, though not directly involved in the scandal, announced during questioning that he would refrain from hosting any more fundraising events while serving as prime minister. He also emphasised the need for a legal framework that holds both accountants and lawmakers responsible for their financial actions.

Support for Kishida and his ruling LDP has reached its lowest level since he assumed office in 2021. According to a NHK poll conducted in early February, the premier’s approval rating stands at 25 per cent, while support for the LDP hovers around 30 per cent.

Furthermore, negotiations regarding the hearing have posed a threat to the timely passage of the fiscal 2024 budget. Kishida aims to secure passage in the lower house by March 2, allowing for the necessary 30-day period for automatic adoption before the start of the fiscal year in April.

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“We must not have a situation where the budget is not adopted according to plan,” Kishida said at the committee hearing.

A failure to deliver the budget smoothly would deal another blow to Kishida as he tries to drum up support ahead of an LDP leadership contest in September, Tobias Harris, an expert on Japanese politics at the German Marshall Fund, said in a note.

“If Kishida is to survive to fight for another term in September, he has to make a convincing display of cleaning house, put the scandal to rest, and hope that good economic news and some diplomatic achievements – a state visit to Washington in April, for example – allow him to make the case for his leadership again,” he was quoted as saying by Reuters.

With inputs from agencies