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    HomeNewsHeadlinesJapan PM overhauls cabinet in bid to weather financial scandal

    Japan PM overhauls cabinet in bid to weather financial scandal

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    In an attempt to contain the damage from a major scandal, Japanese Prime Minister Fumio Kishida announced on Thursday that he would be revamping his cabinet. Chief cabinet secretary Hirokazu Matsuno and industry minister Yasutoshi Nishimura were among those who tendered their resignations on Thursday, as Kishida prepared for his third cabinet reshuffle in the past 16 months.

    Several key ministers from the ruling Liberal Democratic Party (LDP) are set to be replaced, as prosecutors investigate the party’s biggest and most powerful faction for alleged financial improprieties. Former foreign minister Yoshimasa Hayashi confirmed that he would be taking Matsuno’s place as chief cabinet secretary, a crucial role in coordinating policy across the government.

    “In light of the various allegations made regarding political funds, which have shaken the public trust in politics, and the various allegations made regarding my own political funds, I have submitted my resignation,” Matsuno said at a press conference.

    Prosecutors have initiated a criminal investigation into the LDP’s so-called Abe faction, named after late premier Shinzo Abe, for allegedly receiving about 500 million yen ($3.5 million) in missing fundraising proceeds. Investigators will begin searching lawmakers’ offices as early as next week to gather evidence, according to news reports.

    The probe may also extend to other LDP factions, including one previously led by Kishida. The prosecutors’ office declined to comment on any ongoing investigation when contacted by Reuters.

    Political observers have drawn parallels between the current scandal and the Recruit scandal of the late 1980s, when allegations of insider trading led to the resignation of then Prime Minister Noboru Takeshita and other high-ranking government officials. Kishida’s public support has plummeted to around 23%, the lowest since he took office in October 2021, following news of the scandal. Support for the LDP has also dropped below 30% for the first time since 2012, according to an NHK poll this week.

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    The prime minister is not required to call an election until October 2025, and the fractured opposition has historically struggled to challenge the LDP’s hold on power. However, analysts are uncertain about how long Kishida can remain in power amidst the scandal. A top LDP official overseeing budget proposals has resigned, and Kishida is considering cancelling a planned trip to Brazil and Chile next month due to domestic issues, according to media reports.

    “Kishida’s popularity has really taken a hit, so whatever he does he can’t do much to improve that,” said Jun Iio, Professor of Political Studies at the National Graduate Institute for Policy Studies in Tokyo.

    ($1 = 142.9400 yen)

    (Reporting by Kantaro Komiya, Sakura Murakami, Yoshifumi Takemoto, Kaori Kaneko and Mariko Katsumura; Writing by John Geddie; Editing by Leslie Adler, Josie Kao and Sonali Paul)

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