Financial trouble has been stirring at Toshiba for some time now. It looks as though the Japanese conglomerate has now been launched into full crisis mode with a number of key executives leaving he company. Something just isn’t adding up in the financial department at Toshiba and now independent investigations are underway.
The technology company has commissioned a third-party investigation into its book keeping practices for the past few years, which has reportedly been inflated by as much $1 billion. As if that wasn’t bad enough, Toshiba has already admitted that it may have made some mistakes back in 2013, underreporting a number of internal project costs. Previous to that, a Toshiba subsidiary was found to have been overstating earnings results for many years.
Along with CEO Hisao Tanaka, other top-level executives running to the door include vice-president Norio Sasaki, who is expected to leave by September. The execs are jumping ship just as Japanese Prime Minister Shinzō Abe is looking to crack the whip on corporations that don’t play by the rules. The country is looking to spur foreign investment in hopes to rebound its struggling economy, according to WSJ.
Reports suggest third party investigators are scheduled to deliver the results on the book keeping issues at Toshiba in the coming days.
Image via Bloomberg