Toshiba bosses quit over $1.2bn ‘false’ profits scandal

The boss of electronics giant Toshiba has quit amid a $1.2bn (£755m) accounting scandal, taking with him several other senior staff. The resignations were announced following the publication of an independent report which concluded the company had overstated profits over a period of six years and that senior management were complicit in fiddling the figures to bolster Toshiba’s finances. Chief executive Hisao Tanaka, who is also the technology manufacturer’s president, confirmed his departure at a packed news conference in Tokyo. Vice-chairman Norio Sasaki is also standing aside.

Within Toshiba, there was a corporate culture in which one could not go against the wishes of superiors.

A conclusion in the report

It was also announced that Toshiba’s chairman was to run the company pending the appointment of a new management team next month. Japanese media reported that Atsutoshi Nishida, an adviser, was among the other people to give up their posts. The scandal first surfaced in April when an investigation into its accountancy procedures was ordered. The investigators hired by Toshiba confirmed that bosses “systematically” inflated profits in parts of the business which were struggling financially, including personal computers.

It has been revealed that there has been inappropriate accounting going on for a long time, and we deeply apologise for causing this serious trouble for shareholders and other stakeholders,

A company statement

Business Toshiba