Toshiba's chief executive and president Hisao Tanaka resigned Tuesday over accounting
scandal in the company.
Eight board
members, including vice chairman also resigned as part of a major
management reshuffling. Toshiba's current chairman, Masashi Muromachi, was
named interim president.
Japanese
conglomerate Toshiba, which makes everything from consumer electronics to
nuclear energy technology, has been under fire for months over accounting
irregularities. The company overstated profits by 151.8 billion yen (N244.101
billion) over a seven year period, according to the findings of an independent
committee.
Toshiba "takes
the situation it has caused very seriously and we deeply apologize to our
shareholders, investors and all other stakeholders," the company said in a
letter to investors on Monday. "After examining the report ... the company
will take procedures to correct past financial results as necessary."
The headache
started in April, when Toshiba itself began investigating accounting practices
in its energy division. Things got worse in May, after the company said an
independent committee would be taking over the review. Toshiba even canceled
its year-end dividends and postponed earnings, prompting analysts to downgrade
investment recommendations and earnings forecasts.
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