Executive exodus rumoured for Toshiba

July 15, 2015 | 11:54

Tags: #atsutoshi-nishida #finance #fraud #hisao-tanaka #norio-sasaki

Companies: #toshiba

Toshiba is reportedly to lose its president, Hisao Tanaka, over accounting irregularities discovered by third-party investigators.

According to a report in the Nikkei Asian Review, Hisao Tanaka has told 'close associates' of his intention to resign from his role of president of technology giant Toshiba. Several other executives, totalling more half the board and including former president and vice chair Norio Sasaki whom Tanaka replaced in 2013, are expected to follow Tanaka out of the door as the company seeks to clean its image.

The executive departures are due to be announced when the third-party panel releases its findings in an accounting probe which has investigated financial mismanagement covering the tenure of the three former presidents: Tanaka, Sasaki, and 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.

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.

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.
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