Jul
15
2015

Toshiba Executive Resignations Rumoured

Toshiba's blocky red logo

A report published today in the Nikkei Asian Review has revealed that company president of Toshiba, Hisao Tanaka, plans to tender his resignation from the technology giant. having informed numerous ‘close associates’ of the intention. He is expected to be joined by his predecessor and current vice chair Norio Sasaki, who he displaced in 2013; as well as several other executives, totalling more half the board, as the company aims to clean the slate.

Central to the mass departures is a suggestion that the company has engaged in accounting irregularities. Third party regulators have been investigating financial mismanagement covering the tenure of both of the former presidents mentioned earlier; as well as a third former president, Atsutoshi Nishida, presently a consultant for the company. The investigation is expected to report the company’s complicity in padding its profits by fraudulently manipulating accounting records in order to appear to be more closely competing with rival Hitachi.

Toshiba has not yet made an official statement on the matter, but is expected to do so when it reveals the results of the investigation and reports its delayed financial earnings statement; during which the executive departures are also expected to be announced.

The irregularities, believed to stretch over at least a five-year period, have seen the company pad its operating profits by up to ¥200 billion (around £1.04 billion). Since the investigation was announced in early April, the company’s stock has nose-dived from ¥481.20 to just ¥374.90 today.

[Via Sanitarium.FM]

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Acknowledgements: Original reporting: Nikkei Asian Revi more...
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