TOKYO -- The official campaign period for the House of Councillors election got underway on July 3 as the lingering issue of "money in politics" continues to haunt Japan.

In the 2024 House of Representatives election, the Liberal Democratic Party (LDP) faced severe headwinds due to a slush fund scandal involving the party's faction fundraising parties. When the Mainichi Shimbun traced the cases of three former and incumbent lawmakers who were not officially endorsed by the LDP in the race due to the money scandal, it emerged that they had been engaged in certain common behavior.

The three were Kazuyuki Nakane, 55, who ran in the Saitama No. 6 constituency, Katsuei Hirasawa, 79, in the Tokyo No. 17 constituency, and Koichi Hagiuda, 61, in the Tokyo No. 24 constituency. Nakane lost in the election while the other two were elected.

When the Mainichi examined the election campaign income and expenditure reports, it was discovered that the three had used funds from the LDP branches they respectively headed in their campaigning for the general election.

Under the Political Funds Control Act and the Public Offices Election Act, candidates, even if they are not running on the ticket of political parties, are not prohibited from using the funds of party branches as their election expenses. However, these three candidates essentially ran in the 2024 race as independents to take responsibility over the slush fund scandal. Independent candidates are not granted party endorsement fees and have no chance of being elected through proportional representation if they lose in single-seat constituencies. These should have been the stringent measures they faced in the election based on the party's "deep remorse," as described by Prime Minister and LDP President Shigeru Ishiba.

Regardless, the LDP headquarters had provided 20 million yen (approx. $139,100) to the party branches led by the three candidates shortly before the election, using party subsidies funded by taxpayers' money.

Hagiuda at the time explained, "Of course, I didn't use any of the funds as my election expenses this time," and reported via his office's X account that he had returned the funds to the LDP headquarters. In reality, however, Hagiuda and the other two candidates did cover their campaign expenses with funds from their respective LDP branches.

In the case of Nakane, the LDP decided not to back him in the lower house race on Oct. 9, 2024. He subsequently received a total of 5.5 million yen (around $38,200) from his LDP branch through Nov. 8. Similarly, Hirasawa and Hagiuda received 7.35 million yen (about $51,100) and 5 million yen (roughly $34,800), respectively, in donations from their LDP branches. In addition, Nakane and Hagiuda had received other donations from their LDP branches before they were declared non-endorsed candidates. All three used the funds to cover the rent of their offices, print their campaign posters, and cater for boxed lunches, among other expenses.

Tomoaki Iwai, professor emeritus at Nihon University and an expert on elections and political funding, points out that the three non-endorsed candidates should have taken responsibility in the election in financial terms as well. "The LDP branches receive 'party funds' from the party headquarters and its Tokyo chapter. As non-endorsed candidates, they should explain about the consistency to voters."

When the Mainichi queried the three candidates about this question, a public secretary to Hirasawa replied, "He cannot respond as he is too busy with the Tokyo Metropolitan Assembly election and the upper house contest." Hagiuda's office responded via fax, "We properly conduct election campaigns in compliance with laws and regulations. "

Nakane's secretary, who served as his campaign accountant in the general election, was the only one who told their side of the story in detail.

According to the secretary, donations by supporters and supportive companies had been paid into the account of the LDP branch headed by Nakane, and the funds were diverted for his election expenses.

Regarding the reason for this, the secretary initially told the Mainichi, "That's because Nakane headed the branch even though he was a non-endorsed candidate." However, the secretary later contacted the Mainichi, saying, "I retract the answer that it was because he headed the branch. I've consulted with Nakane himself and will make our formal response as follows: 'We are properly dealing with political funds in accordance with laws and regulations.'"

The secretary stated their view that "because the party branch was accepting individual donations, he (Nakane) was only using those funds in his election."

This view is related to the discussions over a review of corporate and organizational donations to political parties during the recently closed ordinary session of the Diet.

Will Japan continue to allow political party branches to receive donations? A new election period has begun while the question remains unanswered.

(Japanese original by Shota Harumashi and Takahiro Igarashi, Tokyo City News Department)