TOKYO: The chief executive officer of electronics giant Toshiba just announced his resignation amid accusations of an accounting scandal.
Hisao Tanaka, president and chief executive, will be replaced by Toshiba’s chairman, Masashi Muromachi, on Wednesday.
Tanaka’s predecessor, Norio Sasaki, who is vice chairman, will also quit.
Toshiba’s accounting scandal began when securities regulators uncovered problems as they probed the company’s balance sheet earlier this year.
The findings mean Toshiba will have to restate its profits for the period between April 2008 and March 2014. It is unclear whether it will affect the company’s results for the year ending March 2015.
The finance minister, Taro Aso, said the case could undermine confidence in corporate governance in Japan.
He added the accounting irregularities at Toshiba were “very regrettable”.
Toshiba, whose products range from laptops and televisions to nuclear power plants and railway systems, is one of the fixtures of the Japanese corporate scene.
