Hashimoto vs. Fujita: The Explosive Rift Over Alleged Public Funds Kickback

Hashimoto points out: “If profits were made, it amounts to public-funds money laundering.”

Fumitake Fujita (44), co-leader of Nippon Ishin no Kai, again asserted at a November 4 press conference that everything was appropriate regarding the alleged public-funds kickback scheme.

According to reporting in the Sunday edition of Shimbun Akahata, Fujita’s side paid roughly 20 million yen between 2017 and 2024 to a company run by his own publicly funded secretary, under labels such as flyer printing costs. Since over 90% of that money came from public funds such as party subsidies, criticism arose that public money was being funneled back to an insider.

The public secretary reportedly received 7.2 million yen per year in compensation from the company. Although public secretaries are classified as special public officials, this secretary filed a notification for secondary employment, so there was no violation.

Reporters, however, pressed him with harsh questions such as:

“Why is the secretary’s company located in the same place as his home apartment, and why are there no printing machines?”

A national newspaper reporter who was present said:

“Fujita maintained a resolute attitude throughout the press conference and never became flustered. When reporters suggested things like, ‘Why not place orders directly with companies like Print Pack?’ he pushed back strongly, saying, ‘You’re underestimating design work.’ He was also furious that some media outlets bypassed the auto-lock of the secretary’s apartment building and confronted him at his front door. He called the police and said he had submitted the images of the reporters caught on the monitor. He even pressed a reporter from that company who attended the press conference, saying, ‘You can be arrested for unlawful entry. Is this considered acceptable?’ In the end, it felt like the press couldn’t pin him down.”

Meanwhile, from the moment the scandal broke, Toru Hashimoto (56)—the founding figure of Ishin—has been fiercely criticizing Fujita on TV programs and on X.

“If Fujita’s side’s corporation made a profit, it’s outright public-funds money laundering—turning public money into private gain, the worst possible act. Even if it were only reimbursement of actual costs, from the standpoint of Osaka Ishin’s external fairness, it’s unacceptable for a politician.”

“If not for the Akahata article, Fujita would have continued giving orders to the insider company.”

“In my view, Fujita’s actions this time are far more unacceptable than damaging the national flag.”

He has been attacked harshly—even to the point where one might wonder how much a senior “Ishin” figure can criticize a junior colleague.

Hashimoto remains popular even with fees ten times higher

After working as a business owner, among other roles, Fujita was first elected in the 2019 House of Representatives by-election (Osaka 12th district). Since Hashimoto retired from politics in 2015, the two never overlapped, even though Hashimoto is technically his senior. Fujita is neither a disciple nor one of Hashimoto’s children.

“Online, some people praise Fujita, saying he hasn’t been influenced by Hashimoto—who is often imagined to be exercising power behind the scenes. Fujita has responded maturely, saying things like, ‘I appreciate Hashimoto-san’s tough encouragement,’ while also distancing himself by stating, ‘We often don’t share the same way of thinking.’ When he appeared on Rehack on October 22, during a discussion about not having the entrenched ties that other parties’ support bases have, he made a point of saying, ‘Even if Hashimoto-san hypothetically opposed a coalition, we could just ignore him.’ He emphasized that he isn’t beholden to him. Compared with party leader Hirofumi Yoshimura (50), who has long worked alongside Hashimoto, Fujita is clearly the bolder one. For Hashimoto, Fujita—considered the beloved protégé of former leader Baba—is not exactly endearing, which is probably why he’s attacking him so intensely,” said a political reporter from a Kansai TV station.

At the November 4 press conference, a reporter asked:

“It seems like there are two factions within Ishin. Did something happen between you and Hashimoto-san?”

Fujita replied:

“There’s nothing in particular between us.”

When this became an online article, Hashimoto quote-posted it on X and commented:

“There’s nothing that happened between me and Mr. Fujita. I simply want Japanese politics to develop a sensor that says, ‘Let’s refrain from these kinds of dealings.’”

He jabbed at Fujita while insisting he wasn’t engaging in a personal attack.

“Hashimoto isn’t just a lawyer and former politician—he’s also charming, entertaining, and very popular. His appearance fee is about ten times higher than that of a typical commentator, yet he is still in high demand on news and variety programs. However, some shows have recently grown hesitant because his opinions carry too much influence. In any case, Fujita has caught the eye of a troublesome senior,” said a source at a major TV network.

For now, there is no talk of Fujita resigning as Ishin’s co-leader. However, if Hashimoto’s attacks become even harsher, his position may become unstable.