Toshiba CEO, board members to exit amid accounting scandal

Fraud investigators due to release report next week

Tags: JapanToshiba Corporation
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Toshiba CEO, board members to exit amid accounting scandal Hisao Tanaka will step down at the next shareholders’ meeting in September. (Getty Images)
By  Stephen McBride Published  July 15, 2015

Toshiba's CEO, Hisao Tanaka, will step down in September, along with a number of board members, in connection with accounting irregularities, Reuters reported, citing unnamed insiders.

According to the report, over half the board, including vice chairman Norio Sasaki, will be replaced at the next shareholders' meeting. An independent inquiry is now underway to determine the roles of senior executives in the fudging of company financials.

The third-party committee appointed to investigate the matter is due to release its findings next week. In the meantime Toshiba remains unable to close its year-end financials and has suspended the payment of dividends.

According to insiders, investigators believe that the 2011 Fukushima disaster raised concerns about an impact on Toshiba's nuclear power division and pushed executives to set overly aggressive targets in fledgling IoT businesses such as smart meters and electronic toll booths. It is in these areas that the accounting regularities are thought to be most prevalent.

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