Toshiba CEO resigned due to problems with the company's financial statements

The President and CEO of Toshiba Hisao Tanaka resigned due to problems with Toshiba's financial statements. As it turned out, for several years the company's profits were artificially overstated in reports, and top managers knew about it, Reuters writes . Now the duties of the head of the company will be performed by Masasi Muromaki, who is the chairman of Toshiba’s board of directors. It is possible that in the near future, part of the directors of the company will also leave their positions, and they will be replaced by outside managers.

The company's problems began in February of this year, when Japanese financial regulators found in Toshiba’s financial statements distorted cost data for executing contracts. Thanks to the provision of incorrect data, the company has been able to publish inflated data on its profits for several years.

Already in May, Toshiba announced its intention to postpone the publication of reports, and the company's capitalization fell immediately to $ 3.6 billion. The company also did not publish the usual forecast for the current fiscal year, although it was previously reported that the expectations for net profit are about $ 1 billion, report Vedomosti. In addition, the corporation also refused to pay dividends.

This month, Toshiba’s management invited an independent audit team to the company to verify the financial statements for the previous years.
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In order to offset the consequences of juggling statements and falling capitalization of the company, Toshiba may have to sell some of its assets. Most likely, assets worth about $ 1.64 billion will be sold, which includes, in particular, the share of Tishiba in Westinghouse Electric - a US company operating in the field of nuclear energy.