The Abe faction of the ruling Liberal Democratic Party in Japan finalized its decision to dissolve the faction on Friday in the midst of a political funds scandal, Japanese media reported.

The Abe faction is the largest faction of the party, with 98 members in both the House of Representatives and the House of Councillors.

Similarly, Toshihiro Nikai, former secretary-general of the LDP, who serves as chairman of its Nikai faction, also declared the dissolution of the 38-member faction during its general meeting on Friday.

The announcement was made after Japanese Prime Minister Fumio Kishida said on Thursday that he is considering disbanding the Kishida faction, in response to the controversy surrounding political fund parties within LDP factions.

Kishida, who is also the LDP president, told reporters at the Prime Minister's Office on Friday the Kishida faction will be dissolved to restore the public's trust in politics.

Last month, Kishida stepped down from his role as chairman of the 46-member Kishida faction amid the deepening slush fund scandal. Allegations suggest that lawmakers affiliated with LDP factions redirected funds exceeding the sales quota for party tickets back to the politicians as slush funds, with no record of the entire financial flow in the factions' or their members' financial statements.

The special investigation squad of the Tokyo District Public Prosecutors Office made indictments on Friday against two lawmakers from the Abe faction, and former accounting officers of the Abe, Nikai and Kishida factions.

Meanwhile, the special investigation squad announced that it has collectively dropped charges against seven senior members of the Abe faction who were accused of violating the Political Funds Control Law. The suspicion arose that they failed to report the excess portion of revenues from party ticket sales in political funds income and expenditure reports of their factions. However, there was insufficient evidence to prove their collusion with the accounting officers.

The individuals who were not prosecuted are Hirokazu Matsuno, former chief cabinet secretary; Yasutoshi Nishimura, former minister of economy, trade and industry; Tsuyoshi Takagi, former chairperson of the LDP's Diet Affairs Committee; Hiroshige Seko, former secretary-general for the LDP in the House of Councillors; Koichi Hagiuda, former chairperson of the party's Policy Research Council; Hakubun Shimomura, former minister of education, culture, sports, science and technology; and Ryu Shionoya, former education minister.