Olympus and now Toshiba ! ( £780m scandal )

Toshiba’s boss has quit the Japanese conglomerate over a 152bn yen (£780m) accounting scandal that the government said threatened to undermine investors’ confidence in the country. Hisao Tanaka, the company’s president and chief executive, will be replaced by Toshiba’s chairman, Masashi Muromachi, until a new chief executive is found. Tanaka’s predecessors, Norio Sasaki, who is vice-chairman, and Atsutoshi Nishida, who is an adviser to the company, will also leave.

Toshiba overstated its operating profits over several years in accounting irregularities involving its top management, an independent panel of accountants and lawyers said on Monday.


Tanaka and Sasaki knew about the profit overstatement and created a pressurised corporate culture that prompted business heads to manipulate figures to meet targets, the investigators said in their report.

At a news conference on Tuesday, Tanaka said he did not tell anyone to falsify accounts but that he would take responsibility for the investigators’ findings at a company that is regarded as one of the emblems of Japan’s industrial prowess. “I see this as the most damaging event for our brand in the company’s 140-year history,” Tanaka said after making a ritual deep bow of contrition while cameras whirred and flashed. “I don’t think these problems can be overcome overnight.”

Tanaka and Sasaki originally intended to resign in the coming months, but their ousting was announced soon after a government minister said the scandal could damage international confidence in Japanese business.