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Cover-up at Toshiba forces boss to resign

By Roger Baird

Published 22/07/2015

Scandal: Hisao Tanaka
Scandal: Hisao Tanaka

The chief executive of manufacturing giant Toshiba has stepped down over a 152bn yen (£780m) accounting scandal.

Hisao Tanaka resigned after an independent panel commissioned by Toshiba found there had been a systematic cover-up of under-performing parts of the group between 2008 and 2014.

Japan's finance minister Taro Aso warned the Toshiba case could undermine confidence in corporate governance in Japan, adding that the affair was "very regrettable".

The Tokyo-based firm, which traces its history back to 1873, makes products as diverse as nuclear power stations to washing machines.

But the parts of the group that were in trouble in the six-year period include its computer and semiconductor businesses.

The firm said: "The company takes the situation very seriously and we deeply apologise to our shareholders, investors and all other stakeholders."

Mr Tanaka, who is also president, is expected to be succeeded by chairman Masashi Muromachi.

The group's vice-chairman Norio Sasaki is also resigning, as he served as president between 2009 and June 2013.

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