
Increased Transparency in Lawmaker Funding, But Challenges Remain
The Upper House of Japan's parliament passed legislation on December 24th, 2023, aimed at increasing transparency in how lawmakers handle political funds. This move comes after the ruling coalition lost its majority in the Lower House elections in October, leading to the submission of bills by various political parties.
One key bill, passed unanimously, bans policy activity allowances to lawmakers from political organizations. These payments were previously criticized for their lack of transparency, as lawmakers were not required to disclose how they spent the money.
Another bill, jointly submitted by the junior coalition partner Komeito and the opposition Democratic Party for the People, establishes a third-party organ within the Diet to monitor the flow of funds to lawmakers. This bill received support from other opposition parties and the ruling Liberal Democratic Party.
The LDP also passed a bill banning purchases of tickets to fundraising parties by foreigners and foreign companies, and establishing a database of political fund reports. However, this database will not cover reports from all political organizations, which handle the majority of political funds.
The main opposition Constitutional Democratic Party of Japan continues to push for a ban on all donations from companies and organizations. Prime Minister Shigeru Ishiba, however, has emphasized greater disclosure rather than an outright prohibition, arguing that political donations are a way for companies to express their opinions.
This difference in stance could make it difficult to fulfill the verbal agreement between the ruling coalition and opposition parties to resolve the issue by March 2025.