Japan's Ichiro Ozawa to appear at ethics panel over scandal

Japanese political powerbroker Ichiro Ozawa said on Tuesday he would appear at a parliamentary ethics panel over a funding scandal, in an about-face likely to ease a rift in the ruling party.

The bickering in the ruling Democratic Party of Japan (DPJ) has distracted the government from addressing tough policy decisions and complicated prospects for passing laws in a divided Parliament, including bills needed to implement the budget for the fiscal year from April 1.

Resolving the intraparty row would relieve Prime Minister Naoto Kan of one headache, but he has plenty more. Opposition parties have threatened to boycott parliamentary business when it resumes in January, unless chief chief cabinet secretary Yoshito Sengoku and transport minister Sumio Mabuchi resign.

Both were targets of non-binding censure motions in the upper house for their handling of a territorial row with China.

Kan indicated on Monday that he was considering reshuffling his cabinet, but gave no clues to what specific personnel changes he had in mind.