TOKYO - A coterie of 16 Democratic Party of Japan (DPJ) lawmakers announced Thursday they would seek to leave the DPJ's bloc in the House of Representatives, to oppose moves being made to suspend former party leader Ichiro Ozawa.

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Koichiro Watanabe, speaking at a press conference on behalf of the 16, did not rule out the possibility of not backing bills related to the key fiscal 2011 budget as this would be disastrous for the embattled Prime Minister Naoto Kan, who should he fail to get the bill passed in a divided government, may see his own job on the line.

Watanabe did mention however, that Ozawa's treatment by the party over his involvement in a political funds scandal was not the only reason for the 16-person planned exodus from the DPJ bloc, but said that the group also ardently opposes the plan to raise the country's 5 percent consumption tax.

Kan originally floated the tax hike as a way to help tackle the nation's mountain debt and kickstart its sluggish export-led economy.

But the tax move ahead of last year's Upper House elections saw the prime minister fail to garner the majority of support needed and subsequently the DPJ failed to consolidate its power in both houses of parliament.

Since then Kan has been largely kowtowing to opposition parties and is desperately  trying to curry enough favor from smaller parties to ensure that the fiscal 2011 budget doesn't end up at a political statement in parliament.

Katsuya Okada, Secretary General of the DPJ, urged them to reconsider and told reporters: "It is obvious that DPJ lawmakers cannot leave the party's parliamentary groups (under party rules). It is hard to understand their actions."

Chief Cabinet Secretary Yukio Edano added at a news conference that it is "unthinkable from a common sense standpoint" to form more than one group from the same party.

Yet the 16-person bloc did mention the fact that forming a new party within the existing party was not entirely out of the question.  

The 16 lawmakers made it known that their decision to leave the DPJ lower house group is largely concerned with the group's view that Kan lack leadership and had failed to manage the administration and make good on electoral pledges.

The DPJ executives are moving toward suspending the membership of Ozawa from the party after being indicted January 31 for alleged false reporting of his political funds.

The suspension, officials say, is likely to be in place until the trial is over. The trail could begin as early as September, official said.

The DPJ's ethics committee plans to offer Ozawa an opportunity to explain the scandal Tuesday before the executive party makes its final conclusion on Ozawa's future in the party, according to DPJ lawmakers.

Ozawa, who has persistently denied any wrongdoing, said he will stick to his guns in court in an unwavering show of denial and defiance since the allegations were first made.

Lawmakers close to Ozawa, a known powerbroker in the party, said he will likely object to the proposed suspension when he meets the committee.