Tokyo, JAPAN: (FILES) Toshiba’s logo sign is illuminated on the Toshiba building in central Tokyo, 31 October 2006. Electronics and energy giant Toshiba Corp. announced 14 December 2006 its plans to sell its entire stake in Japanese label Toshiba EMI to British partner EMI Group, saying that music was no longer relevant to its business. […]
Credit: AFP/Getty Images
Toshiba’s CEO Hisao Tanak is stepping down after an investigation unearthed that company executives were complicit in misreporting earnings of $1.2 billion (¥151.8 billion) over the past six years.
The company’s vice-chairman Norio Sasaki and former president Atsutoshi Nishida have also resigned. Masashi Muromachi, Toshiba’s current chairman, will be taking over as an interim CEO.
An independent panel hired by Toshiba implicated the company’s three most recent chief executives, saying each had an active role in inflating the company’s operating profits since 2008
The report states:
The improper accounting procedures were continuously carried out as a de facto policy of the management. And it was impossible for anyone to go against the intention in Toshiba’s corporate culture.
Toshiba is believed to be considering the sale of property and other company assets to aid in its recovery. It is unclear whether the Securities and Exchange Surveillance Commission will seek a penalty from the company yet.
➤ Toshiba CEO quits after company lied about $1.2 billion profits [Engadget]
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