During the days of all-inclusive Budget Committee debates in both Houses of the Diet this week, opposition parties focused on the issue of "politics and money," particularly on the donation scandal involving the Liberal Democratic Party's largest faction. The debates produced one positive result: The ruling coalition of the LDP and New Komeito agreed to introduce a bill during the current session to put new limits on political donations.
The scandal has raised three specific questions. First, how should the Diet investigate the faction's alleged coverup of a 100 million yen contribution from the Japan Dentists Federation (Nisshiren)? Second, how should the Political Funds Control Law be tightened to regulate currently unlimited donations between political groups? And third, what should be done to ensure transparency in "detour donations" through the LDP's fundraising arm, Kokumin Seiji Kyokai (National Political Association)?
The LDP-Komeito proposal would put a 50 million yen-a-year cap on donations from one political group to another. It certainly represents a step forward but does not go far enough. The biggest shortcoming is that political parties (including chapters) and their fundraising groups like Kokumin Seiji Kyokai would be excluded. Thus the impression is that the LDP is not very serious about plugging the loopholes in the funds-control law.