Japan’s Kishida May Dissolve His Faction Over Slush-Fund Scandal


(Bloomberg) — Japanese Prime Minister Fumio Kishida is weighing the dissolution of his political faction after a slush-fund scandal roiling the ruling Liberal Democratic Party spread to include his own inner circle, adding pressure on the cabinet just as support ratings had started to recover.

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The announcement comes after reports Thursday that Tokyo prosecutors may indict a former treasurer from Kishida’s faction. The premier had recently stepped down as leader of the group as the scandal rippled across his party. He had served as chairman since 2012.

Read More: Prosecutors Mull Indicting Ex-Treasurer of Japan Kishida Faction

“If this will contribute to the restoration of trust in politics, it’s something we must consider,” Kishida told reporters on Thursday evening.

After setting a string of fresh lows, the prime minister’s support ratings in some surveys had just begun to edge higher after his administration’s response to a New Year’s Day earthquake in the nation’s northwest won approval. The spread of the slush-fund scandal to his own faction may reverse that recovery in forthcoming polls.

While no general election has to be held until 2025, this may increase the possibility of Kishida losing his position before his term officially ends in September. His faction is the fourth-largest within the LDP, and these internal camps can play a key role in determining who is elected premier and who gets posts in the cabinet.

Other factions in the party may also be broken up. A faction headed by former premier Shinzo Abe, which was initially implicated in the scandal, is discussing dissolution now as well, according to Kyodo News.

“Within the party, the Abe faction is considering dissolving itself as well, but there is opposition to that,” Kishida told reporters on Friday morning. “However, I don’t think I’m in a position to say anything about the state of other factions.”

–With assistance from Takashi Hirokawa and Yuki Hagiwara.

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