Oh no, you're thinking, yet another cookie pop-up. Well, sorry, it's the law. We measure how many people read us, and ensure you see relevant ads, by storing cookies on your device. If you're cool with that, hit “Accept all Cookies”. For more info and to customize your settings, hit “Customize Settings”.

Review and manage your consent

Here's an overview of our use of cookies, similar technologies and how to manage them. You can also change your choices at any time, by hitting the “Your Consent Options” link on the site's footer.

Manage Cookie Preferences
  • These cookies are strictly necessary so that you can navigate the site as normal and use all features. Without these cookies we cannot provide you with the service that you expect.

  • These cookies are used to make advertising messages more relevant to you. They perform functions like preventing the same ad from continuously reappearing, ensuring that ads are properly displayed for advertisers, and in some cases selecting advertisements that are based on your interests.

  • These cookies collect information in aggregate form to help us understand how our websites are being used. They allow us to count visits and traffic sources so that we can measure and improve the performance of our sites. If people say no to these cookies, we do not know how many people have visited and we cannot monitor performance.

See also our Cookie policy and Privacy policy.

This article is more than 1 year old

Toshiba CEO and execs quit over $1.2bn six-year accounting scandal

Bottom line completely wrong for years, says Japanese giant

Toshiba CEO Hisao Tanaka and seven other bigwigs have quit after a probe concluded profit figures had been inflated beyond their real values.

The Japanese electronics giant said in a brief statement [PDF] today that $1.2bn (£770m, 151.8bn yen) was incorrectly added to Toshiba's income-before-tax figures in the 2008 to 2014 fiscal years.

The resignations follow the conclusion of a two-month investigation into Toshiba's accounting practices by an outside panel headed by a lawyer. The full results of the report were delivered on July 20 in Japanese, and have yet to be translated into English.

Toshiba said "inappropriate accounting" practices occurred in three different business units: PCs, semiconductors, and visual products. Tosh also reported incorrect percentage of completion numbers over the period in question.

As a result, Hisao Tanaka has ejected from his representative executive officer, president and chief and executive officer and director roles. Also out are Norio Sasaki, vice chairman of the board of directors, and Hidejiro Shimomitsu, Masahiko Fukakushi, Kiyoshi Kobayashi, and Toshio Masaki, all of whom served in representative executive officer, corporate senior executive vice president and director roles. Keizo Maeda, a former representative executive officer, corporate senior executive vice president and director, will only retain his corporate senior vice president role.

Toshiba has also taken resignations from Makoto Kubo, chairman of the audit committee and director, and Atustoshi Nishida, advisor to the board.

Further penalties for the ousted directors and executives will be announced later this month.

Toshiba plans to begin a management restructure to be determined by a committee of advisors and directors. A new team of bosses is expected to be in place by mid-August. In the meantime, Toshiba has named Masashi Muromachi as the interim CEO, while Fumiaki Ushio will take over as senior vice president in charge of day-to-day activities.

Tosh has also pushed the publication of its financial figures for the full fiscal 2014 year back to August 31 from July 21. The first quarter of fiscal 2015 will be reported on September 15, with an extraordinary general meeting of shareholders planned to take place some time later that month. ®

Similar topics

TIP US OFF

Send us news


Other stories you might like