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Accounting Scandal Takes Down Toshiba’s Head Honcho

Aarti Maharaj | July 15, 2015

According to Reuters, investigators are scrutinizing top officials who may have contributed to accounting irregularities and financial misstatements, which led to inflated profits by more than 170 billion yen (US$1.2 billion).

Toshiba hired a third-party to investigate previous bookkeeping policies and practices that led to overstated profits. Investigators are focusing the probe around key board members who may have encouraged the unethical behavior for several years.

The investigation comes at a time where the country’s Prime Minister Shinzo Abe is looking to revamp corporate governance among major companies and crackdown on corporate misconduct. Sources told Reuters that a shakeup in the electronics manufacturer’s boardroom might happen at its next shareholders’ meeting in September.

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