The Japanese conglomerate, Toshiba has been under massive consumer surveillance since its inflated profits shown in last years audits. They have been under scrutiny ever since the resignation of the company’s then President and Chief Executive Hisao Tanaka, Vice Chairman Norio Sasaki, and advisor Atsutoshi Nishida was due to allegations of manipulation of figures.
History reveals a common connection of Toshiba senior management and profit padding. Strictly speaking of chief staff pushing subordinates to cover up weak financial data.
To make matters worse, recent news indicated that Toshiba Corp. is being investigated by the United States Justice Department and Securities and Exchange Commission for allegedly hiding $1.3 billion in losses at its nuclear power operations.
The rumor is that Toshiba allegedly tampered with financial statements and documents involving its delivery of corporate bonds. Presently, Toshiba the cornerstone of the Japanese industrial corporation has announced that its US businesses are cooperating with authorities over alleged accounting flaws. Toshiba also announced to assist in the streamlining of their business they will be cutting a further 3,000 jobs, making its total number of job losses to 14,000. The company has been in the midst of restructuring since last year’s scandal.
The company has reportedly recently sold its medical equipment division to Canon for approximately $6bn. They even struck a preliminary deal for the sale of the consumer electronics business to China’s Midea. Following the allegations reported, the Toshiba shares fell to roughly 8 percent to 192 yen in Tokyo, the biggest drop since Feb. 5. The shares had climbed as much as 4.9 percent before the probe report.
“The markets are very sensitive to any news of impropriety,” said Yukihiko Shimada, a Tokyo-based analyst at SMBC Nikko Securities Inc. Although it expects to be profitable next year, due to the declining demand across all areas of its business, Toshiba is planning a financial loss this year of YEN 710bn,