Japan's Kishida Considers Cabinet Reshuffle and Party Position Changes Amid Slush Fund Allegations Fallout

Japanese Prime Minister Fumio Kishida is reportedly considering replacing all five ministers and party executives from the Liberal Democratic Party (LDP) faction 'Abeha,' which is embroiled in allegations of slush fund creation. The scandal is causing significant repercussions as key executives of Abeha, the largest faction within the ruling LDP, are all implicated in the slush fund allegations.

[Image source=Yonhap News]

On the 10th, Asahi Shimbun reported, citing multiple government officials, that Prime Minister Kishida has solidified his intention to replace not only Chief Cabinet Secretary Hirokazu Matsuno, who was already mentioned as a replacement candidate, but also Economy, Trade and Industry Minister Yasutoshi Nishimura, LDP Policy Research Council Chairman Koichi Hagiuda, and LDP Diet Affairs Committee Chairman Tsuyoshi Takagi. The replacement of Hiroshige Seko, LDP Secretary-General in the House of Councillors (Upper House), is also under consideration. The five ministers and party executives facing effective dismissal are influential ruling party politicians from Abeha, including those who have served as the faction’s secretary-general overseeing practical affairs.

Initially, Prime Minister Kishida planned to respond after monitoring the investigation, but as public criticism intensified, it is analyzed that he shifted toward a cabinet reshuffle and early replacement of party executives. Kishida reportedly met last night with Taro Aso, LDP Vice President and leader of the 'Asoha,' the second-largest faction within the LDP, to discuss the scale of personnel changes and successors. The cabinet reshuffle and party executive appointments are expected to be implemented as early as within this year.

Abeha is accused of hosting political fundraising events called so-called 'parties' from 2018 to 2022, during which they allocated 'party tickets' and refunded excess funds to affiliated lawmakers who sold more than their quota, but did not officially record these transactions in accounting, instead using them as slush funds. The five individuals facing dismissal are suspected of pocketing slush funds ranging from at least 1 million yen (approximately 9.1 million KRW) to as much as 10 million yen (approximately 91 million KRW). Yomiuri Shimbun reported that dozens of lawmakers within Abeha, including faction executives, may have received refunds for excess party ticket sales, turning them into slush funds.

This slush fund scandal is expected to deal a significant blow not only to Prime Minister Kishida, whose approval ratings have fallen to 'resignation crisis' levels, but also to Abeha, the largest faction within the LDP. With five key ministers and influential party executives from Abeha currently implicated in the slush fund allegations, a decline in Abeha’s influence within the party is inevitable. It is anticipated that Kishida will exclude Abeha members accused of slush fund creation from the cabinet reshuffle and LDP personnel appointments.

Abeha is the largest faction within the LDP, holding 99 affiliated lawmakers, and has produced four prime ministers since 2000: Yoshiro Mori, Junichiro Koizumi, Shinzo Abe, and Yasuo Fukuda.

This content was produced with the assistance of AI translation services.