Japanese Prime Minister Fumio Kishida is set to replace Chief Cabinet Secretary Hirokazu Matsuno amidst swirling allegations of a slush fund scandal.

The Yomiuri newspaper reported that Kishida's decision came in the wake of accusations that threatened to undermine the credibility of his already struggling administration further, as per The Star.

Japan's Cabinet Shake-Up Amid Fund Scandal

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(Photo : STR/JIJI Press/AFP via Getty Images)
Japan's Prime Minister Fumio Kishida responds to reporters' questions upon his arrival at the prime minister's office on December 11, 2023.

Matsuno, a key cabinet member, is suspected of concealing ¥10 million ($69,000) in income derived from fundraising events organized by his faction within the long-ruling Liberal Democratic Party (LDP), as reported by the Asahi newspaper on Friday. The scandal has sent shockwaves through the political landscape, and with Kishida's popularity plummeting, a major cabinet reshuffle is in the offing.

Reports from the Asahi and Mainichi newspapers on Sunday indicate that Kishida is not stopping at Matsuno; he is also planning to replace other key lawmakers, including Nishimura and Koichi Hagiuda, the police chief of the LDP.

These individuals, part of the LDP's largest faction, are allegedly linked to the mismanagement of fundraising proceeds, totaling more than 100 million yen ($700,000), which were allegedly kept off the books.

Efforts to obtain comments from the prime minister's office, Matsuno, and Hagiuda on Sunday proved futile, with all three remaining elusive. Matsuno, serving as the top government spokesman, had declined to comment during press conferences the previous week. Hagiuda, on the other hand, has promised an explanation pending an investigation into his funding, as reported by the Kyodo news agency on Saturday.

As the scandal unfolds, Tokyo prosecutors are gearing up to investigate lawmakers once the current parliamentary session concludes on Wednesday. Attempts to reach prosecutors over the weekend were unsuccessful, and a spokesperson reiterated their inability to comment on ongoing investigations, according to Japan Today.

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Kishida's Dwindling Support Amidst Challenges

The allegations and impending investigations have dealt a severe blow to the public's support for Kishida's government, reaching its lowest point since he assumed office two years ago.

The issues extend beyond the current scandal, encompassing concerns about the LDP's connections to a controversial religious organization, escalating living costs, imminent tax hikes, and dissatisfaction with Kishida's economic policies.

"I am closely examining my own political financing report and would like to provide a thorough explanation at the appropriate time," commented Nishimura, head of the powerful Ministry of Economy, Trade, and Industry.

Despite expressing a sense of responsibility and apologizing for contributing to the growing distrust in politics, Nishimura emphasized that he had not been informed of any specific details at this time and intended to continue fulfilling his duties.

With Kishida's popularity on the decline and the cabinet reshuffle looming, the political landscape in Japan remains uncertain. The outcome of the investigations and the subsequent actions taken by the prime minister will undoubtedly shape the trajectory of Japanese politics in the coming weeks as the nation grapples with a leadership crisis and widespread disillusionment in the political sphere, Rauters reported.

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