Rampant use of underground money at the LDP

Japan Times : 'Underground money' termed a necessary evil

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Toshiyuki Takigawa, 55, is suspected of violating the Political Funds Control Law by not listing in the faction's political donations report a 100 million yen check allegedly received by former Prime Minister Ryutaro Hashimoto from the Japan Dental Association.
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Sources close to the LDP, however, sympathize with Takigawa, saying that such "underground money," which does not show up in political fund reports, is necessary in the world of politics.

One former secretary to an LDP member of the House of Representatives showed surprise when the incident came to light.

"It's unthinkable to hand (the money) in check form," the former secretary said. "They don't understand the difference between open money and underground money."

Remarks from other sources indicate that similar practices are rampant.
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According to the faction's political fund reports, income for 2001 came to some 420 million yen excluding money carried forward. Money gained through fundraisers made up 260 million yen of the amount, followed by about 100 million yen from donations by the political bodies of powerful faction members. Party dues and other membership fees came to roughly 60 million yen.
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The faction has its roots in the intraparty group formed by the late Prime Minister Kakuei Tanaka and has long reigned as the mainstream faction within the LDP. It enjoys strong ties with various industries.

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It seems to me that arresting the Treasurer (Toshiyuki Takigawa) rather than the beneficiary of the cheque (Ryutaro Hashimoto) is just finding a scape-goat to avoid arresting somebody directly at the top.

Yes, but then again, MOST of Japan's media sources are liberal, thus supporting the opposition camp, led by the DPJ, who has even thought of suing Hashimoto and the LDP over this issue. This has happened, but some are debating on who is responsible. As a conservative, I support the LDP and the Hashimoto Faction, undoubtebly the most conservative grouping (compared to the more reforming-conservative Mori Faction), but I must admit that Maciamo has a point, the Treasurer is a scapegoat for Hashimoto.