New Democratic Party Member Exposes Shocking Use of Old Communication Expenses

Use of the “Second Wallet”

In the extraordinary Diet session last year, a legal revision was made that requires the disclosure of the use of the research and publicity travel expenses (formerly known as the communication expenses) and the return of any remaining balance starting from August this year, placing pressure on the offices of each Diet member to comply.

The old communication expenses were paid separately from salary, amounting to 1 million yen per month, and there was no requirement for disclosure or return of the remaining balance. It was often referred to as the second wallet for Diet members. The recent memory of a new Diet member who was elected in the October 31, 2021, Lower House election and received the full 1 million yen for the month of October after just one day in office sparked criticism.

The Japan Innovation Party proposed in the Diet that the use of these expenses and the return of the remaining balance should be mandatory. Under public pressure, the Liberal Democratic Party also decided to revise the law during the extraordinary Diet session.

“This will apply from the August payment this year, but details regarding the receipt disclosure criteria and methods are still to be discussed in the current ordinary Diet session, so the specifics remain undecided. Mr. Noda has already taken the lead and started publishing the details of expenses and receipts on his website since last October, and we are using that as a reference,” said a veteran secretary of the Constitutional Democratic Party of Japan.

“Mr. Noda” refers to Yoshihiko Noda, the leader of the Constitutional Democratic Party of Japan (67). He disclosed the expenses for October and November of last year, including the salaries of his private secretaries, car lease costs, and newspaper fees. It was also noted that he purchased the Kindle edition of Shigeru Ishiba’s book Conservative Politicians: My Policy, My Destiny on October 8, the day before the dissolution of the Lower House, and listed the purchase of a stopwatch (3,180 yen) as an expense.

The Japan Innovation Party and the Democratic Party for the People have voluntarily disclosed the use of the old communication expenses and receipts by their members. The Liberal Democratic Party, initially reluctant to disclose such information, was pressured by the spotlight on political funds raised through the former Abe faction’s political fundraising parties, as well as criticism of the old communication expenses being used as a slush fund, leading them to agree.

“Expenses that were difficult to disclose, or expenses for which receipts could not be obtained, were often covered by the old communication expenses,” stated a former LDP minister, prefacing the comment before continuing.

Physical checkup and suit expenses

“The communication expenses are transferred twice a month, on the 10th and at the end of the month, to the individual bank accounts of the legislators. In my case, my office and I split it 50-50. When I became a minister, I had a driver and security personnel, and I gave them a small monthly token of appreciation of 30,000 yen, which I covered using the communication expenses. I also used it to entertain bureaucrats at high-end clubs and restaurants. Many offices in the Liberal Democratic Party split the funds, but since it’s deposited into individual accounts, there were lawmakers who pocketed the full amount and used it to rent rooms in Tokyo for papakatsu (dating for money),” explained a former LDP minister.

While some lawmakers and their offices, without any discipline, used the funds freely, are those from the Japan Innovation Party and the Democratic Party for the People who voluntarily disclose their expenditures free from any issues?

“Mr. Takezume’s (a member of the Democratic Party for the People) spending is suspicious,” a veteran secretary of the party added.

“The use of these funds is up to the individual legislator’s discretion, but in these times, it’s natural to separate public and private matters. However, Mr. Takezume has listed expenses for health checkups and expensive suits. The party headquarters only mechanically uploads the receipts submitted by each office without checking the details, and it became a topic of discussion that it could cause trouble if discovered.”

On the Democratic Party for the People’s website, if you select “Information Disclosure” and then “Use of Research and Public Relations Travel Expenses” and click on “Takezume Hitoshi,” you will find a receipt dated July 3, 2023, for a health checkup at Shiodome Medical Clinic, showing an amount of 65,500 yen for a day-trip checkup and gastroscopy.

There is also a high-priced receipt from September 11, 2023, from Eikokuya Ginza 3-chome store, for a total of 1,117,700 yen under gift expenses.

Among the 17 lawmakers from the Democratic Party for the People who disclose their expenses, only Takezume listed the cost of a health checkup and, similarly, only he listed a receipt for over a million yen for a suit from a long-established tailor in Ginza.

“Before becoming a legislator, Takezume worked for Tokyo Electric Power Company, later seconded to the Ministry of Foreign Affairs and stationed in Thailand. He prides himself on being fluent in Thai. He comes from the TEPCO labor union and won the election, though he lacks visibility. His office isn’t frequently visited by reporters, so it seems the handling of the funds might have been careless, thinking it wouldn’t attract attention,” the same secretary remarked.

Amazing “after-the-fact” response

When asked about the two receipts from the Takezume office, the response was:

“As for the 2023 research and public relations travel expenses, they have been disclosed as per the records. Regarding the usage, as stipulated by the National Diet Law and the Salary Law, these funds are used for activities related to national governance research, public relations, interaction with the public, and staying in relevant areas. As for the scope of usage and the method of disclosure under the revised Salary Law on August 1 this year, discussions between the ruling and opposition parties are still ongoing, so we will follow the results of those discussions. That is all.”

The answer was as brief as a response that could be framed and hung as a calligraphy work.

After informing the office of the leader of the Democratic Party for the People (currently suspended from office), Yuichiro Tamaki, about the matter, I visited Takezume’s office directly. The secretary in charge of accounting awkwardly admitted, 

“He hadn’t received a health checkup for a while, so we made him take one. But perhaps the human dock should not have been listed.”

Then the secretary continued, 

“As for the 1.17 million yen from Eikokuya (for a suit), it was for a new morning suit. Since I will attend ceremonies and garden parties at the Imperial Palace, I considered renting, but rental options for an 8-piece set at Ginza Eikokuya were about 110,000 yen, so I decided buying it was cheaper in the long run, given I will be a member for 12 years.”

It’s also said that the full amount of the old communication expenses is withdrawn from Takezume’s bank account on the day they are deposited and is managed by his office.

“I know there are various evaluations and I have to think about different voices,” added the secretary.

After this interview, Takezume’s office sent an update, stating, 

“The human dock and morning suit expenses have been deemed inappropriate for the old communication expenses, so they have been removed. Additionally, in accordance with the regulations, 1.36 million yen was donated to a political organization.” The relevant receipts have also been removed from the party’s website.

The details of the old communication expenses will be discussed in future parliamentary debates. At the very least, there should be a clear distinction between public and private matters.