Lockheed - A Scandal for the Ages Part 3

The fallout from the Lockheed bribery scandal in Japan was profound, causing significant political upheaval and long-lasting consequences for the country’s government and its people. The scandal, which exposed that Lockheed had paid millions in bribes to Japanese officials to secure aircraft contracts, particularly for the L-1011 TriStar, sent shockwaves across the nation. One of the most dramatic outcomes was the downfall of Kakuei Tanaka, the influential former prime minister.

Tanaka, already a controversial figure, was revealed to have accepted substantial bribes from Lockheed to influence All Nippon Airways (ANA) in favor of purchasing Lockheed’s planes. Although Tanaka had resigned as prime minister in 1974, largely due to health issues, he still held considerable political sway within Japan’s ruling Liberal Democratic Party (LDP). The revelations of his involvement in such a large-scale bribery scandal led to his arrest in July 1976, marking the first time a former Japanese prime minister had been charged with corruption.

The scandal caused widespread damage to the LDP, the dominant political force in Japan since the mid-1950s. The party, already facing internal divisions, was deeply embarrassed by the bribery revelations. The LDP’s association with economic progress and stability was undermined as public trust eroded after the scandal. Shortly after the scandal broke in the 1976 general election, the LDP lost many seats in the Diet, Japan’s national legislature. Although the party retained control of the government, the scandal intensified internal factionalism, weakening the party and leading to further instability in the years ahead.

The Lockheed scandal also triggered a profound loss of faith in Japan’s political system. The Japanese public, who had long trusted the so-called “Iron Triangle” of business, bureaucracy, and politics that had driven the country’s post-war economic miracle, was shocked by the depth of corruption. The idea that foreign corporations were bribing government officials to influence major business decisions was a betrayal of the public trust. Protests and public demonstrations erupted across Japan, with citizens calling for transparency, reform, and stricter regulations on political donations.

In response to the public outcry, the Japanese government introduced several political reforms to address the issues brought to light by the scandal. Political donation laws were tightened, and new measures were implemented to regulate money flow between corporations and politicians. The Political Funds Control Law was amended to reduce corporate money's influence on elections and increase the accountability of political parties and candidates. Despite these changes, many observers felt the reforms needed to go further to address the systemic issues of political corruption in Japan.

In the aftermath of the Lockheed scandal, one of the most dramatic and bizarre episodes was the suicide attack carried out by Mitsuyasu Maeno, a young actor, and right-wing nationalist, on the compound of Yoshio Kodama, the political fixer who played a key role in the scandal. Maeno’s actions underscored the deep emotions and radical sentiments the scandal had unleashed, particularly among Japan’s far-right nationalist circles, who viewed Kodama’s involvement as a betrayal of their ideals.

Maeno was a well-known figure in Japan’s niche world of ultranationalism. He admired historical samurai values and was deeply influenced by Japan’s militaristic past, often portraying such characters in the movies he starred in. He idolized Japan’s World War II kamikaze pilots, who had sacrificed their lives for the nation, and he saw himself as part of this tradition of self-sacrifice for a higher cause. For Maeno, Yoshio Kodama—a prominent right-wing figure and nationalist leader during and after World War II—had once embodied the patriotic ideals of Japan. But when Kodama’s central role in the Lockheed bribery scandal came to light, Maeno felt deeply betrayed.

Kodama had long held a reputation as a nationalist icon, known for his connections to Japan’s organized crime syndicates and his role in various nationalist causes. During World War II, Kodama was involved in military intelligence and was an influential figure in right-wing movements, including the infamous "Dark Ocean Society." For ultranationalists like Maeno, Kodama’s involvement in the Lockheed scandal—accepting bribes from a foreign corporation and facilitating political corruption—was seen as a betrayal of the very nation Kodama had claimed to serve.

On March 23, 1976, in an act of extreme defiance, Mitsuyasu Maeno launched a dramatic suicide attack on Kodama’s home in Setagaya, Tokyo. He rented a Nanchang CJ-6, a small training aircraft often used by amateur pilots. He flew the plane directly toward Kodama's residence in a move reminiscent of Japan’s kamikaze tactics during the war. Maeno’s intent was clear: to deliver a death blow to Kodama, whom he viewed as a corrupt and dishonorable figure who had sold out Japan’s sovereignty to foreign interests.

Maeno’s plane smashed into Kodama’s compound, specifically targeting his house, though the impact was not as devastating as he had hoped. The crash caused significant damage, but Kodama, who was inside the house at the time, was unharmed. The attack, however, was fatal for Maeno, who died instantly in the crash. The incident quickly became front-page news across Japan, adding a new violent chapter to the already explosive Lockheed scandal.

For many, Maeno’s kamikaze-style suicide attack was an expression of the intense anger and frustration that had gripped certain segments of Japanese society in response to the revelations of political corruption. His extreme action highlighted the disillusionment felt by many nationalists, who viewed the Lockheed scandal as emblematic of a broader moral decay within Japan’s political elite. Kodama, once seen as a symbol of resistance to Western influence, was now perceived as someone who had colluded with foreign powers to enrich himself at the expense of Japan’s integrity.

The attack also highlighted the ongoing influence of ultranationalist and far-right elements in Japanese society. Though small in number, they still held powerful symbolic and sometimes violent sway over public discourse. Maeno’s dramatic gesture, while an isolated act, echoed the sense of betrayal and anger that many felt toward Japan’s political and business leaders in the wake of the Lockheed scandal.

Though uninjured in the attack, Kodama saw his reputation irreparably tarnished by the bribery revelations and Maeno’s dramatic assault. His once formidable influence in Japanese politics and the underworld began to wane in the years following the incident. While he was never convicted or seriously prosecuted for his role in the scandal, the damage to his standing in nationalist and political circles was significant.

The broader impact of the Lockheed scandal on Japan’s political landscape was far-reaching. While the LDP managed to retain power in the immediate aftermath, the party’s dominance was severely weakened. The scandal exposed the vulnerabilities of the LDP’s reliance on money-driven politics. Over the following decades, the party would face repeated corruption scandals that gradually eroded its once ironclad government control. By the 1990s, these ongoing issues culminated in the LDP losing power for the first time in decades, though they would eventually return to dominance in later years.

On October 12, 1983, Kakuei Tanaka was found guilty of taking a $2 million bribe from Lockheed and sentenced to four years in jail. Despite his conviction and prison sentence, Tanaka retained significant political influence and support, reflecting his unique position in Japan’s post-war political landscape.

Following his conviction, Tanaka immediately appealed the court’s ruling, which allowed him to remain free while the appeals process played out. His conviction did little to diminish his political clout within Japan’s Liberal Democratic Party (LDP). Tanaka’s political faction remained one of the most powerful within the party, and he continued to wield considerable behind-the-scenes influence, particularly through his control of the party’s internal funding mechanisms. His faction, known as the "Tanaka faction," dominated Japanese politics, and many of his loyal supporters continued to back him despite the scandal.

Publicly, Tanaka’s popularity in his home district in Niigata Prefecture remained strong, and he was re-elected to the House of Representatives several times after the Lockheed scandal broke, even as the legal proceedings dragged on. Many voters in his district continued to see Tanaka as a man who had delivered tangible benefits to his region, including infrastructure projects and economic development, which earned him loyalty despite the accusations of corruption.

Politically, Tanaka’s influence was so pervasive that even after his conviction, he could maneuver behind the scenes, affecting the careers of several prominent politicians, including future prime ministers. His continued involvement in Japanese politics earned him the nickname the "Shadow Shogun," reflecting his ability to pull strings from the sidelines.

However, as the legal case continued to drag on, Tanaka’s health began to deteriorate. He suffered a series of strokes, starting in 1985, which left him partially paralyzed and unable to speak clearly. Despite these health setbacks, Tanaka remained a significant figure in Japanese politics, largely due to the loyalty of his political allies and the strength of his faction.

In 1987, Japan’s High Court upheld Tanaka’s 1983 conviction, rejecting his appeal. Even then, Tanaka pursued further appeals, taking the case to the Supreme Court of Japan. This drawn-out legal process meant that Tanaka never actually served time in prison for his crimes. By the time the Supreme Court was preparing to issue its final ruling, Tanaka’s health had deteriorated so significantly that he was largely confined to his home, and his political activities were greatly reduced.

Tanaka died in December 1993 at the age of 75, still embroiled in legal appeals and without having served any prison time. His death ended one of Japan’s most colorful and controversial political careers. Though convicted of corruption, Tanaka left a complex legacy: he was celebrated as a master of post-war economic development and condemned as a symbol of political corruption and money-driven politics. His influence on Japanese politics remained substantial even after his death, with many of his political protégés continuing to play prominent roles in the LDP and government.

The scandal also forced a cultural reckoning in Japan. The media extensively covered the Lockheed affair, with newspapers, magazines, and television programs devoting significant attention to the details of the bribery scheme and its players. Investigative reports delved into the complex web of connections between business, politics, and organized crime, and the scandal became a touchstone for debates about ethics, governance, and the influence of corporate power. The public discourse around the scandal led many to question the post-war economic and political system that had delivered so much prosperity to Japan but had also allowed corruption to fester at its core.

In the years following the scandal, Lockheed was forced to reckon with its tarnished reputation in Japan. The company’s image, once associated with cutting-edge aerospace innovation, was now synonymous with corruption and backdoor dealings. Although Lockheed had initially hoped the deal with ANA would secure its future, the scandal cast a long shadow over its operations in Japan and globally. The company’s executives were left to navigate the legal and reputational fallout from one of the biggest corporate scandals of the 20th century.

Ultimately, the Lockheed scandal in Japan was a watershed moment that exposed the deep-rooted problems in the nation’s political and corporate culture. It led to the resignation and arrest of a former prime minister, weakened the LDP, and prompted widespread calls for reform. Yet, while some political changes were made after the scandal, the deeper structural issues that had allowed such corruption to take hold remained a point of contention in Japanese politics for years. The scandal also served as a stark reminder of the global reach of corporate influence and the consequences when that power is wielded unethically.

After the Lockheed hearings, Frank Church continued to gain national prominence for his leadership on intelligence reform, particularly through his work chairing the Church Committee. The committee’s investigations into abuses by U.S. intelligence agencies, including the CIA, FBI, and NSA, revealed covert operations, assassination plots, and illegal domestic spying, leading to significant reforms like the establishment of Senate oversight of intelligence activities and the creation of the Foreign Intelligence Surveillance Act (FISA). These efforts cemented Church’s legacy as a champion of government accountability and transparency, but they also drew criticism from conservatives who believed he weakened U.S. intelligence during the Cold War.

Despite his national success, Church’s political career ended in 1980 when he narrowly lost his Senate seat in Idaho to Republican Steve Symms during a wave of conservative victories led by Ronald Reagan. After leaving the Senate, Church practiced law and remained a respected foreign policy voice until his pancreatic cancer death in 1984. Though he lost his final political battle, Church’s work in intelligence reform and his advocacy for civil liberties left a lasting impact on U.S. governance.

After Carl Kotchian's pivotal testimony in the Lockheed bribery scandal significantly affected his career and life. As Lockheed’s president, Kotchian made the surprising and controversial decision to admit that the company had engaged in bribery to secure contracts with foreign governments. His testimony in 1976 before the U.S. Senate Subcommittee on Multinational Corporations, chaired by Senator Frank Church, exposed widespread corporate corruption and led to a global scandal, particularly involving Japan and other countries where Lockheed had paid bribes. While his candor was seen as a necessary step toward uncovering the truth, it also marked the end of Kotchian’s tenure at Lockheed.

Following his testimony, Kotchian resigned from his position as president of Lockheed. The scandal severely damaged his professional reputation, and although he avoided legal repercussions, his career in the aerospace industry was effectively over. Kotchian lived out the remainder of his life quietly, away from the public eye, reflecting on his decision to come forward with the truth about Lockheed’s corrupt practices. Despite the personal and professional consequences he faced, Kotchian’s admissions were instrumental in the passage of the Foreign Corrupt Practices Act (FCPA) in 1977, which made it illegal for U.S. companies to bribe foreign officials and set new standards for corporate accountability. He passed away in 2008 at the age of 94.

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