Toshiba Corp. says it is unable to confirm up to $182 million in sales at a subsidiary involving “suspicious transactions”.
An internal investigation had found that some transactions at Toshiba IT-Services Corp., couldn’t be confirmed. Toshiba IT-Services Corp. is a subsidiary of Toshiba Digital Services Corp., another unit of the Toshiba Corporation.
Toshiba also says it will remove the amount discovered so far from its financial statements for the fiscal third quarter.
In 2015, Toshiba had seemingly inflated its profits by about $1.2 billion in an accounting scandal. The company then had to restate its pretax earnings covering a six-year period after an internal probe.
Since then, the electronic giants have remained in a state of turmoil, with executive resignations, multibillion-dollar losses in its U.S. nuclear business and also in the sale of its memory-chip unit.
“There are unsettled debts and credits among parties of suspicious transactions,” the company said in its statement concerning Toshiba IT-Services, adding that it “has not found concrete evidence proving that employees of TSC have played leading roles in this suspicious transaction.”
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Toshiba IT-Services had 39 million dollars in revenue in the last fiscal year, the statement read:
“The final impact on profit and revenue as well as facts relating to suspicious transactions are subject to further investigation.”
Toshiba announces new President amidst suspicious transactions turmoil
Toshiba also separately announced that its Chief Executive Officer, Nobuaki Kurumatani will take on the additional title of President. This is part of a revamp of top management with the aim of speeding up decision making.
Japan’s best-known activist investor, Yoshiaki Murakami, had earlier announced a tender offer for Toshiba Machine Co., one of the entities embroiled in a controversial takeover battle for NuFlare Technology Inc.
Murakami’s bid came just hours after Toshiba Machine confirmed its agreement to tender its shares in NuFlare to Toshiba Corp. for ¥11,900 apiece.
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