Koichi Hagiuda, former chairman of the Liberal Democratic Party's (LDP) Policy Research Council and noted member of the Abe faction, recently testified before the House of Representatives Political Ethics Investigation Committee as part of the scandal surrounding undisclosed political funds. During the hearing, Hagiuda revealed he had been informed about the existence of kickbacks during his election campaign back in 2003.
Hagiuda stated, “At the time of my first election, I was told by the then secretary-general every year about holding faction parties, where each member had sales quotas based on their number of elections and positions. It was explained to me: any amount sold beyond those quotas would be returned as political activity funds” (Original quote in Japanese: “平成15年（2003年）の初当選時、当時の事務総長から毎年、派閥のパーティーを開催し、議員には当選回数や役職に応じたいわゆる販売ノルマがある。ノルマを超過して販売した分は、政治活動費として返すとの説明を受けた記憶がございます。”).
Hagiuda's testimony surfaced amid growing scrutiny of the Abe faction's practices, particularly concerning reports of kickbacks not being recorded on financial statements. Another witness, from Hagiuda's office, testified about the guidelines they received from faction officials stating such kickbacks should not appear on income statements.
While Hagiuda confirmed awareness of the kickbacks, he vehemently denied any involvement after former Prime Minister Shinzo Abe reportedly ordered these practices to cease. “I was not involved nor received any consultation on these matters,” Hagiuda asserted, emphasizing his non-participation during key discussions held by faction leaders after Abe's passing.
The political scandal, dubbed the 'secret funds issue,' escalated as Hagiuda appeared before the committee, prompting questions from opposition lawmakers about transparency and integrity within the party, which had undergone significant public scrutiny over the last year.
At the hearing, Hagiuda also expressed regret for the political distrust sparked by these revelations. He stated, “I would like to sincerely apologize for causing considerable doubts among the public and ushering political distrust” (Original quote in Japanese: “国民の皆さまに多大な疑念を抱かせ、政治不信を招いたことについて、この機会に改めて深くおわびを申し上げます。”).
During these proceedings, questions surrounding the origins and timeline of these kickback practices emerged. Former Minister of Education Yoshitaka Shibayama, another member of the Abe faction, testified about directives he received as late as 2014, where agency representatives asked for donations to remain unreported. “I felt uneasy about it, and I express my deep remorse now,” Shibayama acknowledged, highlighting the growing concerns over ethical compliance within their ranks.
One of the most pressing questions raised was about the continuity of these kickback practices after being reportedly suspended. Hagiuda stressed he was neither present at the discussions nor privy to decisions made to resume such practices, reiteratively placing emphasis on the need for Alan Abe faction leaders to clarify details among themselves.
Additional layers of intrigue arise from the varied testimonies and the current political climate as Japan approaches its next election, with opposition parties demanding accountability from LDP members. The essence of this inquiry taps at the larger environmental issues of trust between the government and the citizenry.
Comments from Hagiuda sparked debates on accountability and responsibility. When pressed about the justification of his involvement, he insisted, “I had never intended to exploit the situation for personal gain,” as he attempted to mitigate suspicions surrounding the irregularities tied to his name.
Despite the challenges faced, Hagiuda maintained his innocence, stating, “I have been and will be dedicated to my constituents and principles, even as the nature of political donations is often murky” (Original quote in Japanese: “国民のみなさまに多大な疑念を抱かせ、政治不信を招いたことをおわびします。私はそのような協議に参加する立場になかったのであり…新しいことは分からないというふうに承知をしてます。”).
Political analysts view Hagiuda's assertions as part of broader dynamics at play within the LDP as party leaders grapple with the repercussions of recent scandals. It remains to be seen how the political integrity will fare moving forward, particularly as the party elections loom again.
The next political ethics meeting is set, and anticipation builds among observers as to whether new evidence will surface or if more clarification will become necessary about the kickback culture recognized by past officials. Hagiuda’s role and his faction’s accountability hang on the balance as scrutiny from both voters and political commentators alike intensifies.
The LDP has traditionally wielded significant influence over Japan's political scene, but this scandal could serve as a pivotal moment for reform and transparency reforms, which many citizens are now demanding as the tide of public trust begins to shift.
