Toshiba again accused of profit padding by securities watchdog

Japan’s Securities and Exchange Surveillance Commission has accused Toshiba’s top management of accounting fraud for the period of 2012-2014.

With reports appearing in the media that a security watchdog suspects Toshiba Corp of misreporting its profits by $339.59 million (40 billion yen), shares of the company have fallen by more than 5% in early trade.

The new revelations again highlights accounting troubles that have swirled around Toshiba.

Last week, Toshiba’s rating was downgraded by rating agencies after its admission tha it may face a multi-billion dollar write-off of its nuclear business in the United States.

Japanese news daily, Asahi Shimbun newspaper, had reported, after the closure of the Tokyo stock exchange that the Securities and Exchange Surveillance Commission had reported allegations of accounting fraud to prosecutors.

Asahi Shimbun has reported citing anonymous sources that during 2012-2014, Toshiba had reported profits and gains in its computer operations when in fact the business had not generated any profit.

The news daily also stated that the chairman and the two CEOs who were at the helm of the company, during that period, where allegedly involved in the cheating.

The investigation could now potentially open the doors to filing of formal criminal charges against the company and its former executives.

When asked to respond to requests for comments, officials at Toshiba declined to respond to comment.

Toshiba’s shares have fallen by 35% since last week.


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