Japan's newly-appointed Minister of Economy, Trade and Industry (METI) Yuko Obuchi will resign early next week after a scandal relating to her supporters' misuse of political funds surfaced last week, local media alleged.

According to NHK, two political groups linked with Obuchi had spent up to 43 million yen (US$400,000) in theater events from 2009 to 2011 while another group reportedly purchased goods worth 3.8 million yen from businesses run by Obuchi's relatives in 2009 to 2012.

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Ignorance is not an excuse, Obuchi said hours after the funding allegations emerged but avoided answering questions on a possible resignation, only saying that her main focus is on investigating the issue.

A number of Japanese media - including The Nikkei and Kyodo News - relayed that Obuchi had intimated to several people close to Abe, of her plans to take responsibility over the scandal and step down.

Jiji news, on the other hand, speculated a resignation would only be a matter of time.

However, a representative from Obuchi's camp denied knowledge of the METI's plans to quit.

Obuchi, 40, said she believes, the theater events had been paid for with her supporters' own money but she was aware that any other payments beyond that would constitute a legal violation.

Obuchi plans to present her findings on the questionable expenditures on Monday, during the parliamentary meeting, followed by the submission of her resignation to Prime Minister Shinzo Abe. But the prime minister is reportedly considering moving up the timetable to Sunday, the Sankei reported.

The allegation comes just two months after Obuchi's appointment as METI which is part of Abe's drive to win public approval by showing his support for women.

A mother of two, Obuchi is regarded as a strong contender to become the country's first female prime minister. Abe had hoped to gain Obuchi's help in easing tensions, regarding the government's policy of bringing back the nuclear reactors that were shut down in 201, following the Fukushima disaster.

TagsMinister of Economy Trade and Industry, Yuko Obuchi, funding scandal, Japan nuclear power