Japanese Prime Minister Yukio Hatoyama told the press on Thursday that he believed the Democratic Party of Japan (DPJ) Secretary-General Ichiro Ozawa has explained himself sufficiently about a scandal involving his funds management body.

Japan's ruling Democratic Party Secretary-General Ichiro Ozawa attends a news conference at the party headquarters in Tokyo February 1, 2010. (Xinhua/AFP Photo)

The powerful DPJ No. 2, will provide further details to appease public skepticism if deemed necessary, the Japanese premier indicated.

"'Secretary General Ozawa has explained himself to prosecutors to a fair degree during questioning and has held news conferences, " Hatoyama told reporters on Thursday morning, adding "I think he has explained it to a fair degree, so far."

"He will explain further, if there arises the need for it," said Hatoyama.

The Tokyo District Public Prosecutors Office are unlikely to arraign Ozawa for allegedly conspiring with his aides on the falsification of annual reports for his Rikuzankai fund management body, due to insufficient evidence, sources close to the matter indicated.

However Government sources revealed on Wednesday that the Tokyo District Public Prosecutors Office are leaning toward indicting Tomohiro Ishikawa, DPJ House of Representatives member and personal secretary to Ozawa, on charges of violating the Political Funds Control Law.

Opposition parties will seek to have Ishikawa resign from his position and if Ozawa is exonerated will still demand full disclosure on his involvement in the scandal.

The prosecutors are set to deliberate on the indictments of Ozawa and three of his current and former aides who are in custody later on Thursday.