Toshiba said Tuesday that its CEO Hisao Tanaka is resigning effective immediately following an investigation that found Toshiba had been cooking the books to make the company appear more profitable than it actually was.
Tanaka is one of several executives to leave posts at Toshiba. A few of the company’s directors including Hidejiro Shimomitsu, Masahiko Fukakushi, Kiyoshi Kobayashi, Toshio Masaki and Keizo Maeda are also resigning from their current posts, though Maeda will remain with the firm in another position without representative rights. Masashi Muromachi, the company’s chairman, will replace Tanaka as CEO until the company finds a replacement. According to an investigation into the company’s accounting practices, Toshiba’s books suggested that it made about $1.2 billion more than it actually did.
“It’s not my understanding that I gave orders for improper accounting, but the reality is that such an observation has been made,” Tanaka said recently, according to Reuters. “I see this as the most damaging event for our brand in the company’s 140-year history. I don’t think these problems can be overcome overnight.”
Toshiba said it’s working to correct its books and Reuters suggests that “hefty fines” may be levied against the firm.