December 1, 2012
More than 30 corporations awarded government subsidies have provided a total of more than 260 million yen in political donations to the governing Democratic Party of Japan and the largest opposition party, the Liberal Democratic.
The government subsidies funded by taxpayers’ money may have unlawfully been redirected to the political parties.
The Political Funds Control Law prohibits corporations receiving subsidies from the state coffers from making political donations within one year from the date that they become eligible for the subsidies.
The 2011 political funds report released on November 30 by the Ministry of Internal Affairs shows that 34 corporations, including Toyota Motor, Honda Motor, Toshiba, Sumitomo Chemical, and Mitsubishi Electric, made donations amounting to 265.32 million yen in total.
The 34 corporations applied for the Ministry of Economy, Trade, and Industry’s subsidy program in 2010 and were chosen to be eligible to receive subsidies.
Spokespersons of these corporations argue that their donations are exempt from the ban because the subsidy is unrelated to their profits. The Ministry of Economy, Trade, and Industry, however, explained that the ministry prepared the program for corporations to increase profits.
Under this program, the ministry granted about 147 billion yen to manufacturers of LED products and eco-friendly vehicles in an attempt to boost domestic production and job creation.
The government subsidies funded by taxpayers’ money may have unlawfully been redirected to the political parties.
The Political Funds Control Law prohibits corporations receiving subsidies from the state coffers from making political donations within one year from the date that they become eligible for the subsidies.
The 2011 political funds report released on November 30 by the Ministry of Internal Affairs shows that 34 corporations, including Toyota Motor, Honda Motor, Toshiba, Sumitomo Chemical, and Mitsubishi Electric, made donations amounting to 265.32 million yen in total.
The 34 corporations applied for the Ministry of Economy, Trade, and Industry’s subsidy program in 2010 and were chosen to be eligible to receive subsidies.
Spokespersons of these corporations argue that their donations are exempt from the ban because the subsidy is unrelated to their profits. The Ministry of Economy, Trade, and Industry, however, explained that the ministry prepared the program for corporations to increase profits.
Under this program, the ministry granted about 147 billion yen to manufacturers of LED products and eco-friendly vehicles in an attempt to boost domestic production and job creation.
