CRA under Fire over 1.1 B. Yen in Subsidies before Disbanding

Tokyo, Sept. 13 (Jiji Press)–The Centrist Reform Alliance is facing criticism over its decision to keep one lawmaker in the party so it can receive about 1.1 billion yen in government subsidies before officially disbanding. On social media, the CRA has been harshly criticized for “trying to grab government subsidies” despite previously criticizing lawmakers from the ruling Liberal Democratic Party who were involved in a slush fund scandal. CRA leader Junya Ogawa has explained that the funds are needed to cover expenses related to the February election for the House of Representatives, the lower chamber of parliament. However, it remains unclear whether the move will win public understanding as soaring prices continue to affect household finances. “I want to take criticism with humility,” Ogawa said at a press conference on Friday. “With less than half of the expenses settled, I do not believe it would be appropriate to shift the burden to private contractors,” he said. Ogawa said that the CRA’s political presence would be taken over by a successor party and that the CRA was not simply disappearing. The CRA is slated to receive about 2,338 million yen in government subsidies this year, paid in four installments, with about 1,169 million yen expected to be distributed in October and December. According to Ogawa, about 2 billion yen of the party’s Lower House election expenses will be covered by the subsidies. The party has contracts with private-sector companies under which payments are made in installments, and it still needs to pay more than 1 billion yen to them. The planned three-way merger among the CRA, the Constitutional Democratic Party of Japan and Komeito has collapsed. Former CDP members leaving the CRA will form a new party, while former Komeito members will return to their original party. This constitutes a “split,” meaning neither group will be eligible to receive the remaining portion of the subsidies under law. If the CRA decides to dissolve and split into multiple new parties, each new party would be eligible to receive funds based on the number of lawmakers it holds. But this option was ruled out because the procedures would have taken too much time. Public criticism has erupted online, with comments such as, “They are always harsh on the LDP but too lenient toward themselves,” and “They should pay for the election expenses with their own money.” Keiichiro Asao, an LDP member and former Environment Minister, also criticized the decision on X, formerly Twitter. Referring to his experience of returning about 800 million yen in unused subsidies to the national treasury after the dissolution of Your Party, which he led, he said sarcastically, “If necessary, I will share my experience.” “The proper course would be to split the CRA,” said Tomoaki Iwai, professor emeritus at Nihon University and an expert on political funding. Noting that the CRA’s receipt of 1.1 billion yen in subsidies would be difficult for the public to accept, he said that the party must thoroughly explain how the funds will be used. END [Copyright The Jiji Press, Ltd.]