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Political donations by government-funded organization must be barred

At a meeting of the House of Representatives Special Committee on Administrative Reform on April 19, Japanese Communist Party representative Sasaki Kensho raised questions about public service corporations that have donated large amounts of money to political parties while receiving government subsidy.

Referring to the Japan Dental Association that gave illegal donations to the Liberal Democratic Party through its political action organization, the Japan Dentists Federation, Sasaki stressed, "Those who set up a political action organization in order to evade restrictions on political donations must not be recognized as public service corporations."

Some other public service corporations are also making donations directly to political parties taking advantage of the laxity of restrictions. Although the Political Funds Control Law prevents government-funded organizations from making political donations, this restriction does not apply to organizations that receive subsidies for "research."

Sasaki revealed that the Japan Electrical Manufacturers' Association, the Japan Automobile Manufacturers Association, and the Japan Iron and Steel Federation, all under the jurisdiction of the Ministry of Economy, Trade, and Industry, have donated more than 900 million yen to the LDP while receiving government subsidies of 1.5 billion yen over the last five years.

Pointing out that donations given by government-funded organizations to the LDP is tantamount to tax money siphoned off by the LDP, Sasaki urged the LDP not to accept such suspicious donations. He also emphasized the urgency of the need to ban corporations or any other organizations from making political donations.

Minister of Administrative Reform Chuma Koki stated that improper usage of government subsidies will not be tolerated.
- Akahata, April 20, 2006