Former trade minister Isshu Sugawara submitted his resignation to the House of Representative on Tuesday after coming under investigation again over a money and gift scandal that prosecutors had once dropped.

The prosecutors are likely arranging to issue a summary indictment on the ruling Liberal Democratic Party lawmaker for violation of the election law, a source close to the investigation said. A summary indictment is a simplified proceeding that skips court proceedings and applies to less serious offenses.

Isshu Sugawara. (Kyodo)

The move is expected to deal a heavy blow to Prime Minister Yoshihide Suga, who had pushed for Sugawara to become trade minister in September 2019.

Sugawara submitted a letter of resignation to lower house speaker Tadamori Oshima for approval by the chamber.

"I urge him to fulfill his responsibility to explain himself as soon as possible," said Natsuo Yamaguchi, the leader of Komeito, the LDP's junior coalition ally.

LDP executives had been making arrangements behind the scenes for Sugawara's resignation, as they were concerned about the impact of the money scandal on the July election for the Tokyo metropolitan assembly as well as a lower house election which will be held by this fall, sources close to the matter said.

Sugawara, who stepped down as minister in October 2019 over the scandal, was questioned by prosecutors after a civil inquest body decided in February that he merits indictment. His office is alleged to have offered money and gifts to supporters between 2017 and 2019 in violation of the election law.

The Public Offices Election Law prohibits politicians from making donations to voters in their constituencies, except for money given in person by lawmakers at ceremonies such as weddings and funerals, and violators are fined up to 500,000 yen ($4,500).

As a lawmaker loses his or her job once a fine or more severe penalty is finalized, Sugawara has likely decided to resign, the sources said.

In June last year, the special investigation squad of the Tokyo District Public Prosecutors Office decided not to indict Sugawara for giving condolence money and flowers totaling 300,000 yen through his secretary and others to 27 voters from 2017 to 2019.

But the Committee for the Inquest of Prosecution overturned the decision. Such panels, composed of voters chosen by lottery, are set up to review decisions by prosecutors not to put a suspect on trial if that decision is challenged.