Toshiba Bosses Quit Over $1.2bn Profit Scandal

[muriel_volestrangler]

Source: Sky News

The $1.2bn (£755m) accounting scandal at Toshiba has resulted in the resignations of its chief executive and eight other senior staff.

They were announced following the publication of an independent report which concluded the company had overstated profits over a period of six years and that senior management were complicit in fiddling the figures to bolster Toshiba's finances.
...
The investigators hired by Toshiba confirmed that the firm "systematically" inflated profits in parts of the business which were struggling financially, including personal computers.
...
The firm, which also counts TVs and nuclear power systems among its products, has been unable to close its books for the latest financial year and was forced to cancel its dividend as the investigation took its course.



Read more: http://news.sky.com/story/1522499/toshiba-bosses-quit-over-1-2bn-profit-scandal

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If they over-stated profits, did they pay too much corporate income tax too?

[elias49]

1. This kind of 'honor' never happens in the US.

The bankers, the hedge fund managers, the heads of multi-nationals take the money and run.
No remorse. No shame.
America continues to be in position to learn from others.

[AngryAmish]

2. Only one person resigned when the Chinese hacked OPM

Greatest spy scandal since Soviets stole the bomb.

Americans do not believe in accountability.

[24601]

4. While the President is responsible for all that happens or fails to happen with the Executive

Branch, it's not a US tradition for POTUS to resign.

The VEEP really isn't responsible for anything other than his personal staffs at the WH/Old EOB complex and at the Capitol. He presides over the Senate and can vote there only to breaks a tie. He also has to check the Washington Post front page Obits each morning to see if he has changed jobs. That's the limit of the VEEP authority - he's not the Deputy Commander in Chief of anything and is not in the Chain of Command.

OPM is a direct report to the President and the chief resigned, albeit late in the game.

I believe the Chief Technology Officer (WH OSTP) has been unaffected.

The Cabinet Officer with the most Jurisdiction is Secretary Johnson, Homeland Security. (It's not DoD since NSA's lane is limited to USG classified networks and USCYBERCOM has responsibility over DoD unclassified networks.) Justice has an after the fact investigative role.

[AngryAmish]

5. Who said anything about the President resigning?

Chief and all deputies even remotely responsible should step down.

[24601]

8. The OP was about a Chief Executive plus senior staff resigning. The President is the Chief

Executive and as such is responsible for everything that happens, or fails to happen with respect to the Executive Branch. My observation was that our traditions did not include POTUS resignations.

[BlueEye]

3. It must be rather easy for large corporations to pull off this type of accounting scandal in Japan.

First Olympus, now Toshiba. Both of these make the top-10 list for worst accounting scandal by dollar amount ($1.7B and 1.2B, respectively).

Although American companies still try and pull fast ones from time to time (and the financial industry routinely gets away with murder), the amount of fraud by non-financial U.S. companies has declined since Sarbanes-Oxley ("SOX&quot was passed in 2002. The law forces a higher standard of accountability on CEO/CFOs, as well as auditors, and the SEC does enforce the rules.

Although Japan apparently has some law similar to SOX, informally known as "J-SOX", clearly it isn't working, or is not being enforced. I wonder if there is a cultural resistance in the Japanese government to take actions that might harm a large national conglomerate... They *should* since that conglomerate was cooking its books.

[NCjack]

6. The independent auditor (Name?) defended the owners -- nice. /nt

[Sunlei]

7. make a reason & resign quickly, to take all the bonus/profit sharing wealth with you.