Scandal At Toshiba Deepens,PC Subsidiaries Fudged Numbers OZ CEO Fails To Respond
Mark Whittard the CEO of Toshiba Australia has not responded to our question as to whether Toshiba Australia has ever overstated their income or profits or pushed forward sales in an effort to report better than achieved results.
It’s now been revealed that three consecutive Toshiba chief executives fuelled more than $1.7 billion in dodgy accounting reports an independent panel hired by the company said last night in Japan.
The report that is likely to lead to wholesale changes at the top.
The report said that the investigators discovered problems in multiple parts of the company including the personal-computer division, and the semiconductor business, which has recently been Toshiba’s biggest profit maker.
The investigators found that the 140-year-old company, one of Japan’s best-known corporate brands, had lax controls and a top-down culture that left managers little choice but to fudge their numbers, by setting unrealistic profit targets and demanding that subordinates meet them.
The Wall Street Journal said that the panel, which was led by a former top prosecutor in Japan who got help from dozens of outside lawyers and accountants, reviewed income statements from 2008 to 2014.
“There was a corporate culture at Toshiba under which it was impossible to go against the intentions of superiors,” the report said.
“Toshiba should have been a model for other companies,” it said. “Instead, improper accounting procedures involving extremely large amounts were continuously carried out. The fact that this has come to light is truly a surprise and has the effect of betraying the trust of many stakeholders.”
The report singled out three chief executives-the current holder of the job, Hisao Tanaka, and his two predecessors, Norio Sasaki (2009-13) and Atsutoshi Nishida (2005-09).
All three pressured managers to achieve high sales targets, especially in the wake of the 2008 global financial crisis, the report said. It said the company had a system under which the CEO would set a “challenge” for subordinates to meet.
Sometimes the “challenge” would come shortly before the end of a quarter or fiscal year, forcing managers to postpone losses or push forward sales to meet the challenge, the report said.
People familiar with the matter have said that Messrs. Tanaka and Sasaki, who is now vice chairman, are likely to resign.
A Toshiba spokeswoman said any announcements would be made at a press conference being held later today in Japan.