Toshiba’s CEO Is Stepping Down Over an Accounting Scandal

TIME

Accounting irregularities have plunged the Japanese conglomerate company Toshiba into a crisis, with several key board members stepping down, including CEO Hisao Tanaka.

Other executives expected to leave Toshiba around September include Norio Sasaki, who is currently vice chairman and a former president. The Japanese company has also hired a third-party committee to investigate past book-keeping practices that have inflated profits by more than $1 billion, sources told Reuters.

The move comes as Prime Minister Shinzo Abe is set to crack down on misbehaving corporations in a bid to attract more foreign investors to jumpstart the struggling Japanese economy, reported The Wall Street Journal.

In April, Toshiba — the maker of electronic products such as laptops and computer chips — disclosed that it may have underreported the costs of some infrastructure projects starting April 2013. This after the company had found in October 2013 that one of its…

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