Toshiba CEO quits for fudging accounts
Tokyo: Toshiba’s CEO and eight other executives resigned on Tuesday to take responsibility for doctored books that inflated profits at the Japanese technology manufacturer by 152 billion yen ($1.2 billion) over several years.Toshiba Corp. acknowledged a systematic cover-up, which began in 2008. Various parts of the Japanese company’s sprawling business including computer chips and personal computers were struggling financially, but top managers set unrealistic earnings targets under the banner of “challenge,” and subordinates faked results.
On top of its struggles in electronics, Tokyo-based Toshiba’s prospects in nuclear power, one of its core businesses, were shaken after the 2011 Fukushima disaster set off public fears about reactor safety, making new nuclear plants unlikely in Japan. All 48 of the nation’s working reactors are now offline.
Bowing deeply before flashing cameras at a news conference, CEO Hisao Tanaka kept his head lowered for nearly half a minute in a gesture meant to convey deep shame and contrition. Mr Tanaka’s predecessors, Norio Sasaki, now a vice-chairman, and Atsutoshi Nishida, an adviser, also gave up their posts along with six other executives.
The company said that the fraud continued thro-ugh the fiscal year that ended in March, and work on revising the accounts to show the complete and true financial picture is not yet finished. It promised an emergency stockholder meeting for September, where it plans to deliver a genuine financial report.