Toshiba’s CEO, Hisao Tanaka, Quits After Company Lied About $1.2 Billion Profits

Toshiba’s CEO, Hisao Tanaka, Quits After Company Lied About $1.2 Billion Profits

Toshiba President Hisao Tanaka (C) arrives for a press conference at the company's headquarters in Tokyo on July 21, 2015. Toshiba president Hisao Tanaka and his predecessor Norio Sasaki quit the company on July 21 as one of Japan's best-known firms was hammered by a 1.2 billion USD accounting scandal blamed on management's overzealous pursuit of profit. AFP PHOTO / KAZUHIRO NOGIKAZUHIRO NOGI/AFP/Getty Images

Once a dominant name in computer peripherals and services, Toshiba, has been seeing fallout since the company’s big executives were caught entangled in a fake profit scandal. Now the company has received another big blow. Toshiba’s CEO and President Hisao Tanaka has resigned from the company following the disclosure the company made about $1.2 billion in false profits. Tanaka along with two other high level executives has announced to ‘leave the company’ so as to take responsibility of the entire scandal.

Six years ago, an independent investigation on the company found the management guilty of lying about their operating profits for a period of over six years so as to meet their internal targets. All this began just after the financial crash that the company suffered seven years ago.

Reports also suggest that Toshiba’s chairman Masashi Muromachi will be filling the vacant chief executive role till the time they appoint an entirely new management team. Apart from Tanaka, company’s vice-chairman Norio Sasaki, former president Atsutoshi Nishida and eight other high-level executives have till now been forced to step down from their position after they were found guilty of making false claims regarding the company’s profits.

Toshiba was estimated at around 55 billion yen ($442 million) write-down, however, today’s reports suggests that it was nearly triple that figure. The company will as for now try to tap other options like selling property and their other assets so as to raise money in order to cover the blots that are created on its balance sheet.