TOKYO: Former Japanese industry minister NISHIMURA Yasutoshi told a parliamentary panel Friday that he is unaware of the circumstances that led to the resumption of kickbacks at the heart of a money scandal rocking the ruling Liberal Democratic Party.

Nishimura apologized for causing public distrust in politics at a hearing of the Deliberative Council on Political Ethics of the House of Representatives, the lower chamber of parliament.

Nishimura, who previously served as secretary-general of an LDP faction once led by the late former Prime Minister ABE Shinzo, denied his involvement in the faction’s practice of kicking back revenues from fundraising parties to member lawmakers.

He said that Abe, then faction chief, and other executives decided in April 2022 to abolish the practice, but it was resumed after the former prime minister’s death.

The kickbacks were dealt with as a longstanding custom by successive faction chiefs and chief accountants, Nishimura said. “I do not know when it began.”

Asked about the Abe faction’s practice of not recording the money in political funds reports, Nishimura said that he did not know about it until the problem caught public attention.

He said that he was not involved in the faction’s accounting, saying he has never seen its account books, bank books or political fund reports.

According to Nishimura, faction executives decided to abolish the kickback system at a meeting in April 2022 after Abe expressed his intention to do so, saying that the practice was not transparent and could raise suspicions.

The meeting was attended by Nishimura, Abe, former LDP General Council chief SHIONOYA Ryu, former party policy leader SHIMOMURA Hakubun, SEKO Hiroshige, former LDP secretary-general in the House of Councillors, the parliament’s upper chamber, and the faction’s chief accountant.

Nishimura said that faction executives held another meeting in early August 2022 after Abe died the previous month, where it was proposed that the faction purchase tickets for individual members’ fundraising parties as an alternative to the kickback scheme. No conclusion was reached at the meeting, he said.

The resumption of kickbacks is believed to have been decided at an executive meeting held at a later date, but Nishimura said that he was unaware of what happened.

Appearing before the same panel later on Friday, former Chief Cabinet Secretary MATSUNO Hirokazu denied any involvement in the faction’s accounting as its secretary-general.

Matsuno apologized for causing serious distrust in politics. He said that he was not aware that kickbacks were being conducted and that such funds were not being recorded in political fund reports.

JIJI Press