Japan's LDP Rocked by Slush Fund Scandal as Four Cabinet Ministers Resign

Cabinet Resignations Amidst Mounting Pressure

Four prominent Japanese cabinet ministers tendered their resignations on December 14, 2023, amidst a deepening slush fund scandal that has engulfed the ruling Liberal Democratic Party (LDP). The resignations marked a significant crisis for Prime Minister Fumio Kishida's administration, which was already facing low approval ratings.

The ministers who stepped down were:

• Hirokazu Matsuno, Chief Cabinet Secretary
• Yasutoshi Nishimura, Economy and Industry Minister
• Junji Suzuki, Internal Affairs Minister
• Ichiro Miyashita, Agriculture Minister

All four ministers were members of the LDP's largest faction, the Seiwa-kai, formerly led by the late Prime Minister Shinzo Abe.

Details of the Slush Fund Scandal

The scandal centers on allegations of unreported income and kickbacks derived from fundraising events organized by LDP factions. According to reports, LDP factions would set quotas for their members to sell tickets to these fundraising parties. Any profits exceeding these quotas were allegedly returned to the individual lawmakers or channeled into factional funds, without being properly declared in political funding reports. This practice effectively created undeclared 'slush funds'.

Prosecutors estimated that at least 500 million yen (approximately US$3.4 million to US$3.53 million) was involved in these undeclared funds over a five-year period between 2018 and 2022. The bulk of these funds was reportedly associated with the Seiwa-kai faction. Some sources indicated that over 600 million yen in campaign funds were not reported.

Political Fallout and Broader Implications

The resignations and the ongoing investigation triggered a severe political crisis, leading to a significant drop in public trust in the LDP and Prime Minister Kishida's government. The scandal prompted a reshuffle of the cabinet by Prime Minister Kishida in an attempt to mitigate the damage. The widespread backlash also led to the formal disbanding of most internal LDP factions, fundamentally reshaping the party's internal dynamics.

The repercussions of the scandal extended beyond the immediate resignations, influencing subsequent political events. The LDP lost its majorities in both the 2024 general election and the 2025 House of Councillors election. The scandal has continued to be a significant factor in Japanese politics, with a snap election called for February 3, 2026, by Prime Minister Takaichi Sanae, aiming to restore the LDP's majority.