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| Toshiba chief executive to resign over scandal | Toshiba chief executive to resign over scandal |
| (35 minutes later) | |
| Toshiba's chief executive and president Hisao Tanaka is to resign after the company said it had overstated its profits for the past six years. | Toshiba's chief executive and president Hisao Tanaka is to resign after the company said it had overstated its profits for the past six years. |
| He will be succeeded by chairman Masashi Muromachi, with vice-chairman Norio Sasaki also stepping down. | He will be succeeded by chairman Masashi Muromachi, with vice-chairman Norio Sasaki also stepping down. |
| On Monday, an independent panel appointed by Toshiba said the firm had overstated its operating profit by a total of 151.8bn yen ($1.22bn, £780m). | On Monday, an independent panel appointed by Toshiba said the firm had overstated its operating profit by a total of 151.8bn yen ($1.22bn, £780m). |
| The overstatement was roughly triple an initial Toshiba estimate. | The overstatement was roughly triple an initial Toshiba estimate. |
| The finance minister, Taro Aso, said the case could undermine confidence in corporate governance in Japan. | 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",. | |
| Japan's government has been trying to regain global investors' confidence with better corporate governance after Olympus, was found to have covered up $1.7bn in losses in late 2011, in what was until now Japan's worst corporate governance scandal. | |
| 'Corporate culture' | |
| The report's findings are expected to lead to the restatement of earnings, a board overhaul and potentially hefty fines for Toshiba. | |
| The inquiry found that the misreporting of profits began after the financial crash seven years ago, when senior managers began imposing unrealistic performance targets. | The inquiry found that the misreporting of profits began after the financial crash seven years ago, when senior managers began imposing unrealistic performance targets. |
| "Within Toshiba, there was a corporate culture in which one could not go against the wishes of superiors," the report said. | "Within Toshiba, there was a corporate culture in which one could not go against the wishes of superiors," the report said. |
| "Therefore, when top management presented 'challenges', division presidents, line managers and employees below them continually carried out inappropriate accounting practices to meet targets in line with the wishes of their superiors." | "Therefore, when top management presented 'challenges', division presidents, line managers and employees below them continually carried out inappropriate accounting practices to meet targets in line with the wishes of their superiors." |
| Mr Tanaka and his predecessor Mr Sasaki are among eight high-level executives who have now resigned after the independent report found senior management complicit in a scheme to inflate profits over several years. | |
| Regulators are believed to be starting their own review of Toshiba's book-keeping, based on Monday's report. | |
| Shares in Toshiba rose 6% on the Nikkei stock exchange in Japan on relief that the report had few nasty surprises. But they are still down around 23% since Toshiba first disclosed cases of accounting irregularities in early April. |