Kishida likely to shake up Cabinet in wake of political funds scandal

Amid allegations that key government and Liberal Democratic Party officials received tens of millions of yen in unreported funds, the spotlight has now turned to the possibility of a full-fledged Cabinet overhaul.

Prime Minister Fumio Kishida is reportedly mulling over removing from government and party leadership posts, including from junior positions, all members of the faction formerly led by the late Prime Minister Shinzo Abe.

At the moment, 15 of the faction's members are in government — four ministers, five deputy ministers and six political officers — while three are on the LDP executive: policy chief Koichi Hagiuda, Upper House Secretary-General Hiroshige Seko and parliamentary affairs chief Tsuyoshi Takagi.

Kishida evaded questions on the matter Monday, while still emphasizing his sense of urgency in addressing the scandal over the unreported money generated by factions' fundraising parties.

“It’s all about taking an appropriate response at an appropriate time, with the aim of restoring the public's trust and avoiding causing delays (to the workings) of the administration,” Kishida said, answering questions from the opposition in the Upper House.

The financial scandal has hit the government at its core and eroded Kishida’s political capital even further at a time when his approval ratings were already dwindling.

On Friday, Chief Cabinet Secretary Hirokazu Matsuno, who served as secretary-general of the Abe faction for two years from 2019 to 2021, was hit by allegations that he had received over ¥10 million in unreported funds from the faction.

The daily Yomiuri Shimbun reported Saturday that Kishida had made clear his intention to dismiss Matsuno with the aim of avoiding a political vacuum at a critical time for the administration.

The opposition Constitutional Democratic Party of Japan (CDP) submitted a nonbinding censure motion against Matsuno on Monday, on the grounds that having him in the chief cabinet secretary position “is detrimental to the national interest,” the party’s parliamentary affairs chief Jun Azumi told reporters. The motion is expected to be rejected by the legislature Tuesday.

In the wake of the allegations, Matsuno stuck to his lines Monday, avoiding any direct comment on the matter and adding that his faction is currently confirming the facts.

“I am committed to fulfilling the responsibilities of my position,” Matsuno said.

Besides acting as the administration’s spokesperson — holding two daily news conferences — the chief cabinet secretary is tasked with policy coordination and liaising with ministries. Matsuno, a former education minister, has been serving in the role since the start of the Kishida administration in October 2021.

Other ministers and senior party executives who have served as secretary-general of the Abe faction have been engulfed in the scandal, with the faction reportedly gaining hundreds of millions of yen in the period from 2018 to 2022.

Takagi and Seko also allegedly received over ¥10 million, while Hagiuda and the chair of the Abe faction’s leadership committee, Ryu Shionoya, received smaller amounts that were still in the millions yen, the Asahi Shimbun reported Saturday.

"Although any decision on personnel matters is the prerogative of the prime minister, I would like to take my own decision on whether or not to leave office," Hagiuda said Monday, hinting at his responsibility as policy chief.

Economy minister Yasutoshi Nishimura, a former secretary-general of the Abe faction accused of receiving over ¥1 million in unreported funds, apologized Monday, saying that he felt responsibility for the allegations directed at the faction.

“I will proceed with scrutinizing my own political funds reports again,” Nishimura said, adding that he planned to provide an explanation on the matter at "an appropriate time."

“In any case, I’ll fully cooperate with the investigative authorities if I’m asked to do so,” he said.

In addition, agriculture minister Ichiro Miyashita and internal affairs minister Junji Suzuki, both members of the Abe faction, will reportedly be axed from their posts, even though they have denied receiving any funds.

Over the last few days, Kishida has met with several LDP executives, including Secretary-General Toshimitsu Motegi and Vice President Taro Aso, in what appear to have been consultations on how to approach the ongoing scandal.

The scandal — which has touched members outside of the leadership of the Abe faction, including former Olympics Minister Seiko Hashimoto — represents a turning point for the faction, a group that has all but dominated the LDP and the country’s political landscape over the last decade.

The faction currently boasts 99 lawmakers and has produced four prime ministers since 2000. Kishida, hailing from the fourth-largest faction in the party, counted on the support of the faction in his climb to power and has continued to do so in running his administration after he became prime minister.

While he hasn’t been touched by the investigation so far, Kishida risks bearing the brunt of soaring popular discontent over the financial scandal and with the LDP at large.

In a joint poll conducted over the weekend by the Sankei Shimbun and Fuji TV, the Cabinet’s approval rating had plummeted to 22.5%, a 5.3 percentage point drop compared with last month. An overwhelming 87.7% of respondents said that Kishida had some responsibility for the scandal.

Expectations are rising that the CDP might submit a no-confidence motion against the Cabinet on Tuesday, when the ongoing session of parliament comes to a close.

"We have to consider (whether to submit the motion) or not while taking into account the political situation, the investigation and... all those complexities," Azumi told reporters Monday, strongly denying reports the party had already made a decision on the matter.