A bill to revise Japan's Political Funds Control Act and other related laws, a response to a slush fund scandal involving factions of the ruling Liberal Democratic Party (LDP), has passed the House of Representatives and is expected to be enacted during the current Diet session.

Policy activity funds, handed to individual lawmakers from their parties which they can use without disclosure, will be abolished across the board. But this isn't the end. Japan must be rid of a system where money has a say in government affairs.

The system of policy activity funds, which allows LDP executives and other politicians to freely spend money from murky origins, has long been criticized as a breeding ground for money-driven politics. Their full abolition is both necessary and overdue.

However, during the Diet deliberations, the LDP's desperate attempts to create loopholes became evident. While claiming to abolish policy activity funds, the party sought to establish a new expenditure category which could remain confidential under the pretext of diplomatic secrecy and other reasons.

This effort was thwarted due to strong rejection from opposition parties, which argued that it would create "a new black box" for unaccountable spending. Ultimately, the LDP had no choice but to support the proposal that called for the complete abolition of policy activity funds, submitted jointly by seven opposition parties including the Constitutional Democratic Party of Japan.

Regarding the establishment of an independent body to monitor political funds, the LDP also compromised by supporting a proposal from its coalition partner Komeito and the Democratic Party for the People, which called for broad oversight of political funding. This shift occurred after the new spending category proposed by the LDP, which would have been subject to oversight by a third-party group, was scrapped.

The LDP's concessions stem from its position as a minority governing party, which makes passing legislation impossible without accepting opposition demands. Given the closely divided Diet, the LDP must continue to work toward achieving a chamber built upon thorough deliberations that reflects the balance of power between ruling and opposition parties.

Nevertheless, a major issue remains unresolved.

The question of corporate and organizational donations has been deferred, with the ruling and opposition parties agreeing to reach a conclusion by the end of March next year. The LDP has remained reluctant to ban such contributions, while the opposition parties have also failed to present a unified stance on the issue.

Corporate and organizational donations have long been seen as a threat to fair policymaking, and there was supposed to be a consensus toward banning them following the major political reforms in the 1990s. Prime Minister Shigeru Ishiba has a responsibility to make a swift decision on the matter.

Opposition parties, too, must avoid needlessly prolonging debates in hopes of turning the issue into a campaign point for next summer's House of Councillors election. Both the ruling and opposition camps must work together to reach a conclusion during the ordinary Diet session next year.

It is imperative to immediately tackle this "30-year unfinished business" and push forward with comprehensive reforms. This is the only way to dispel the deep-seated distrust the public has.