Toshiba medical unit boss fired over accounting fraud

Oct 30, 2013

Toshiba said Wednesday it had fired a renegade manager for falsely inflating profits at a medical subsidiary, and that the unit's chief executive would quit.

The Japanese engineering conglomerate said the unnamed employee had "overstated numbers and made misstatements" in what it described as "inappropriate" accounting at Toshiba Medical Information Systems.

The false accounting happened over a six-year period starting in 2006, the conglomerate said, adding that it inflated the division's profits by about $100 million in total.

In response, a manager who ordered his underling to fake the financial statements was fired while the unit's and directors have agreed to step down, Toshiba said.

"Toshiba Corporation deeply regrets that such a situation has occurred...and is taking the matter very seriously," it added, saying it would take "preventative measures" to prevent a re-occurence.

However, the vast company said it did not expect the scheme—which saw profits inflated by 9.86 billion yen ($100 million)—to "materially affect its consolidated financial results for the past fiscal years".

The revelation came as Toshiba said its net profit for the six months to September fell 14.4 percent to 21.5 billion yen ($218 million) due to a tax change.

Operating soared 53.7 percent to 105.6 billion yen on sales of 3.04 trillion yen, up 13.2 percent, it added, crediting strong sales of electronic devices and memory chips.

The firm boosted its annual sales forecast by 200 billion yen to 6.3 trillion yen, with a of 100 billion yen.

Explore further: Why the Sony hack isn't big news in Japan

add to favorites email to friend print save as pdf

Related Stories

Toshiba swings to profit as devices sell well

Jul 31, 2013

Japan's Toshiba on Wednesday reported $54 million in net profit for the April-June quarter, reversing a quarterly loss a year earlier, thanks to a weak yen and brisk sales of electronic devices.

NEC swings to quarterly net profit

Jan 31, 2013

Japanese information technology firm NEC said Thursday it had swung to a net profit in the October-December quarter, thanks in part to improved sales in defence systems and mobile networks.

Japan's Fujitsu hit by third-quarter loss

Jan 31, 2012

Japanese high-tech giant Fujitsu plunged into a net loss for the three months to December, it said Tuesday, as it slashed its full-year sales and profit forecast.

Toshiba returns to black on smartphone chip demand

Jan 31, 2011

(AP) -- Toshiba Corp. said Monday it returned to the black in the October-December quarter thanks to robust global demand for the flash memory chips used in digital cameras and smartphones.

Recommended for you

Why the Sony hack isn't big news in Japan

20 hours ago

Japan's biggest newspaper, Yomiuri Shimbun, featured a story about Sony Corp. on its website Friday. It wasn't about hacking. It was about the company's struggling tablet business.

Sony faces 4th ex-employee lawsuit over hack

Dec 20, 2014

A former director of technology for Sony Pictures Entertainment has sued the company over the data breach that resulted in the online posting of his private financial and personal information.

Sony tells AFP it still plans movie release

Dec 20, 2014

Sony Pictures boss Michael Lynton denied Friday the Hollywood studio has "caved" by canceling the release of "The Interview," and said it still hoped to release the controversial film.

2012 movie massacre hung over 'Interview' decision

Dec 19, 2014

When a group claiming credit for the hacking of Sony Pictures Entertainment threated violence against theaters showing "The Interview" earlier this week, the fate of the movie's big-screen life was all but ...

Clooney slams skittish Hollywood after Sony hack

Dec 19, 2014

Film star George Clooney slammed the Hollywood movie industry for failing to stand up against the cyber threats that prompted Sony Pictures to cancel release of the movie "The Interview."

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.