Toshiba CEO quits in $1.2 billion accounting scandal

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Toshiba’s president and CEO Hisao Tanaka is stepping down after an investigative panel found that company executives were complicit in misreported earnings. The independent report said that Toshiba had exaggerated its operating profit by ¥151.8 billion ($1.2 billion) over the past six years. Vice-chairman and former CEO Norio Sasaki is also out, and current chairman Masashi Muromachi will take over the role of interim CEO from tomorrow.

“Within Toshiba, there was a corporate culture in which one could not go against the wishes of superiors,” found investigators. “Therefore, when top management presented ‘challenges,’ division presidents, line managers and employees below them continually carried out inappropriate accounting practices to…

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