Ex-Toshiba boss grilled over fal­si­fied fi­nan­cial re­port

The Pak Banker - - COMPANIES/BOSS -

A for­mer Toshiba pres­i­dent has been ques­tioned by Ja­pan's mar­kets watch­dog and may face crim­i­nal charges over his al­leged in­volve­ment in a fal­si­fied earn­ings scan­dal, re­ports said Satur­day.The com­pany has been roiled by a profit-pad­ding scan­dal, in which bosses for years sys­tem­at­i­cally pushed their sub­or­di­nates to cover-up weak fi­nan­cial fig­ures.Hisao Tanaka was quizzed by the Se­cu­ri­ties and Ex­change Sur­veil­lance Com­mis­sion (SESC), ac­cord­ing to Ja­pan's pub­lic broad­caster NHK and other news re­ports.

The watch­dog sus­pects Tanaka and two other for­mer Toshiba pres­i­dents were aware of fal­si­fied prof­its in its per­sonal com­puter sec­tion but did not step in, NHK said, quot­ing un­named sources close to the case.Tanaka is be­lieved to have de­nied any wrong­do­ing, NHK said, adding that the SESC is ex­am­in­ing whether to seek crim­i­nal pros­e­cu­tion of the three on sus­pi­cion of fal­si­fy­ing fi­nan­cial re­ports in vi­o­la­tion of the Fi­nan­cial In­stru­ments and Ex­change Act.SESC could not be reached Satur­day for com­ment.Toshiba - a vast con­glom­er­ate that makes ev­ery­thing from rice cookers to nu­clear plants - is ex­pect­ing a huge loss of about 710 bil­lion yen ($6.4 bil­lion; Dh23.4 bil­lion) for the year to March with sag­ging global de­mand also con­tribut­ing to its fi­nan­cial woes.

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