TOKYO, Japan, Dec 14: Japanese Prime Minister Fumio Kishida is overhauling his government in response to a significant corruption scandal within the ruling party that has resulted in the resignation of several ministers, including close ally and government spokesperson Hirokazu Matsuno.

Matsuno, officially known as the Chief Cabinet Secretary, announced his resignation on Thursday, following the departure of Economy and Industry Minister Yasutoshi Nishimura. Internal Affairs Minister Junji Suzuki and Agriculture Minister Ichiro Miyashita are also stepping down, alongside the dismissal of five deputy ministers. All these officials belong to the influential "Abe faction," the largest and most powerful faction within the ruling Liberal Democratic Party (LDP), named after the late Prime Minister Shinzo Abe.

Japanese prosecutors have initiated a criminal investigation into the faction, probing allegations of approximately 500 million yen ($3.5 million) in missing fundraising proceeds from party accounts.

Amidst the turmoil, Matsuno expressed his resignation at a press conference, stating, "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." Yoshimasa Hayashi, the former foreign minister, will replace Matsuno.

Prime Minister Kishida, acknowledging the deepening political distrust resulting from the scandal, announced a government revamp on Wednesday. He pledged urgent measures to address the situation, stating, "We will tackle the various issues surrounding political funds head-on... I will make efforts like a ball of fire and lead the LDP to restore the public's trust."

Investigators are expected to search lawmakers' offices for evidence in the coming week and examine other LDP factions for potential involvement.

Facing a decline in public support, Kishida has reshuffled his cabinet twice since the scandal broke, with recent polls indicating a support level of around 23 percent, the lowest since he assumed office in October 2021.

Despite the challenges, Kishida is not required to call for an election until October 2025. Opposition groups, led by the Constitutional Democratic Party (CDPJ), attempted an unsuccessful no-confidence motion against Kishida on Wednesday. CDPJ leader Kenta Izumi criticized the LDP, stating, "The LDP has no self-cleansing ability."

The scandal involves allegations that Matsuno diverted over 10 million yen ($70,600) from faction fundraising events to a slush fund, while Nishimura reportedly kept 1 million yen ($7,000). Vice Defence Minister Hiroyuki Miyazawa revealed that he was instructed by the Abe faction to omit kickbacks from funds' records, suggesting a practice that he assumed had been ongoing for years and was deemed legal.

The scandal has raised concerns about the LDP's ability to address corruption, with opposition leader Kazuo Shii describing it as "a bottomless, serious problem." While collecting proceeds from party events and paying kickbacks are not illegal in Japan if recorded appropriately under the political funds law, failure to report such payments carries a penalty of up to five years in prison. However, prosecution is challenging without specific evidence of an instruction to conceal transactions.