Toshiba’s CEO might be resigned this September due to its accounting frauds

Report from Reuters on July 15 that Nikkei Newspaper confirmed that the CEO of Toshiba, Hisao Tanaka may be resigned due this September because of accountant’s counterfeit scandal.

Previous news from Reuters that Toshibass accountants may have involved with frauds. It indicated that the accountants reduce its trading profit between 100 billion yen to 150 billion yen. There was a third party group doing the investigation scandal and investigating its senior managers whether are involved or not. It is said that the investigation result will be reported in the middle of this month. This scandal may result in a new management structure.

As reported, the investigation began with the basic accounting violations and extended to checking its financial statements. There was rumor that the half of the involved managers in this scandal might be forced to resign.

According to its public details, this is not the first financial scandal has been reported. In October 2013, Toshiba announced its medical subsidiary company reported the false performance in the past few years.

These financial scandals were happened during Hisao Tanakass tenure.He joined Toshiba in 1973 and he has been working for over 40 years in the company. In the third quarter financial report of 2012, Toshiba lost 1.3 billion yen in its home appliances business during October to December in that year. Hisao Tanaka shouldered an important mission to rebuilt the home appliances business to be profitable.

He told the Wall Street Journal reporter that there was no need to quit the intense competition market by imitating the competitors to close down the money-losing business. He implied that he would find a way to go through the dilemma.

Nikkei Newspaper reported that Toshiba may be revealing its investigation result in board of inquiry. And it will also official announce Hisao Tanaka’s Dimission. He might carry out some policies to avoid the similar things happen before the Extraordinary general meeting in September.

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