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TOSHIBA CEO RESIGNS AFTER
ACCOUNTING SCANDAL
Toshiba announces a sweeping reorganization of its corporate leadership
TOSHIBA Corp. Chief Executive Hisao Tanaka re- stakeholders for causing these
problems,” Mr. Tanaka said at
signed Tuesday, a day after an outside investigation a news conference, though he
said he and other current and former executives bore said he hadn’t been aware of
responsibility for an accounting scandal in which the any inappropriate accounting.
Japanese industrial and electronics giant overstated “This has resulted in the largest
profits by more than $1.2 billion over seven years. damage ever to our corporate
image.”
In an effort to move on from what an independent Toshiba said its chairman, Ma-
panel described as a “systemic” problem, Toshiba an- sashi Muromachi, would serve as
nounced a sweeping reorganization of its corporate interim chief executive, and that
leadership, in which eight of 16 board members are more board-member changes will be
stepping down. announced by the end of the month.
“I’m totally disappointed because it
This includes Mr. Tanaka, who has been chief execu- could damage investor confidence in
tive since 2013, and his predecessor, Norio Sasaki, who the Japanese market,” said Deputy Prime
has been serving as vice chairman. Also Tuesday, Mr. Minister Taro Aso, who oversees the finance
Sasaki resigned from a panel that advises Prime Min- ministry and the securities watchdog.
ister Shinzo Abe on economic policy. In light of the scandal, the company will have to
The underpinnings of corporate corruption at Toshiba restate its earnings by 151.8 billion yen ($1.2
were exposed after an investigation by a former Tokyo billion) for the period between April
prosecutor on Monday, finding top executives wrapped 2008 and March 2014.
up in a culture of deceit. This has caused Toshiba shares
to drop more than 20% since May.
Mr. Tanaka has stated: “I deeply apologize to all
ARUBA TRAVELLER - Wednesday, July 22 2015 13INTERNATIONAL
