Japan's main ruling Liberal Democratic Party says it will consider ending the practice of factions passing excess money earned from fundraising back to offices of member lawmakers. Failures to mention that money in political fund reports led to an investigation by Tokyo prosecutors.

LDP Secretary-General Motegi Toshimitsu said on Friday the plan will be discussed at the party's panel, tentatively called the Political Reform Headquarters, that will be launched next week.

Prime Minister Kishida Fumio has put forth a plan to launch the panel in response to the scandal involving factions of the LDP. Tokyo prosecutors are investigating the suspected flow of off-the-book funds.

The LDP panel will examine measures to prevent a recurrence and study what roles factions should assume.

Motegi said it is extremely important to secure transparency in handling political funds, and that the LDP must carry out reforms in many ways.

He said the party will consider using bank transfers for tickets to fundraising events instead of cash payments.

Motegi also said they will discuss ending the practice of factions from paying kickbacks to offices of member lawmakers who sell tickets to fundraising events in excess of their quotas.

He also said the party may decide to audit the incomes and expenditures of its factions.

Motegi added that the LDP will discuss possible revisions to the political funds control law, and a plan to make its funds reports public before submitting them to the government, to improve transparency.

He said the role of LDP factions will be discussed as part of its process to put together a set of reforms.