Toshiba CEO Resigns Over Accounting Scandal

Toshiba’s president and CEO, Hisao Tanaka, along with five other senior executives, have stepped down from their positions over the accounting scandal which emerged last month.

The company announced a sweeping reorganisation of its corporate leadership team, including former executives, who said they took full responsibility for the accounting malpractice which saw Toshiba overstate its profits over seven years by more than $1.2 billion. The resignations came after the independent investigation into the scandal revealed that Toshiba’s three most recent CEOs played an active part in inflating the company’s operating profit since 2008.

The panel concluded that the executives put pressure on Toshiba’s business units, across all sectors of the company, to achieve unrealistic profit targets. The report said: “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 amid Toshiba’s corporate culture”.

After examining the report, Toshiba said it will take the necessary procedures to correct its past financial results. Meanwhile Masashi Muromachi has been appointed as interim CEO and president.