Fate of new economic security law in question amid allegations against top official

There is growing concern within the government and ruling bloc that removing the head of the planning office for an envisaged law on promoting economic security could negatively affect the fate of the key legislation that has been pushed by Prime Minister Fumio Kishida.

“The government will exert its utmost efforts to submit the (economic security) bill to parliament in late February under the new team,” economic security minister Takayuki Kobayashi told a news conference Thursday.

The minister was apparently trying to shrug off uncertainty over the legislation, which is the core of the Kishida administration’s efforts to enhance Japan’s economic security system at a time when the United States and China are competing for economic and technological dominance.

A possible scandal involving Toshihiko Fujii led the Cabinet Secretariat to effectively sack him on Tuesday as councilor in charge of the National Security Secretariat and also as chief of the economic security law planning office. The government explained that it has recognized a case involving Fujii that may lead to his punishment.

According to an online report published Wednesday by weekly magazine Shukan Bunshun, Fujii worked as a teacher at a private business school for many years during the time he also worked for the government, but had not disclosed the second job to the government. The magazine also said that Fujii, who is married, had spent a night at the home of a female reporter for a national daily that published an exclusive story related to economic security.

In the magazine report, Fujii denied the allegations about the side job and the affair.

The government has confirmed Fujii’s “failure to make a prior report required under the National Security Secretariat’s internal regulations when expressing opinions externally,” Chief Cabinet Secretary Hirokazu Matsuno told a meeting of the Budget Committee of the House of Representatives on Thursday. “We’ll work on confirming the facts swiftly.”

At the committee meeting, Shu Watanabe of the main opposition Constitutional Democratic Party of Japan demanded Fujii be summoned as an unsworn witness to bring the truth of the case to light.

The economic security bill calls for supply chains for critical goods, such as semiconductors, to be strengthened and the security of key infrastructure to be ensured. After submitting the bill to parliament later this month, the government hopes to start deliberations on it following the enactment of the fiscal 2022 government budget.

“It’s uncertain whether we can ride out the storm only by dismissing” Fujii, who was the top administrative official involved in the economic security legislation, a source close to the prime minister said. “The impact is huge.”

Sanae Takaichi, head of the ruling Liberal Democratic Party’s Policy Research Council, wrote on Twitter: “The necessity of the legislation remains unchanged. We’ll work hard to have the law enacted during the ongoing parliamentary session.”