The $1.2bn (Â£755m) accounting scandal at Toshiba has resulted in the resignations of its chief executive & a number of other senior staff.
They were announced following the publication of an independent report which concluded the company had overstated profits over a period of six years & that senior management were complicit in fiddling the figures to bolster Toshiba's finances.
Chief executiveÂ Hisao Tanaka, who is moreover the technology manufacturer'sÂ president, confirmed his departure at a packed news conference in Tokyo.
Beforehand, he had bowed his head for nearly half a minute in a gesture meant to convey deep shame & contrition.
It was moreover announced thatÂ Toshiba's chairman was to run the company pending the appointment of a new management team next month.
Tanaka's predecessors, Norio Sasaki, now a vice chairman, & Atsutoshi Nishida, an adviser, were among the other people to donate up their posts.
The scent of scandal first surfacedÂ in early April when the company ordered an investigation into its accounting.
The investigators hired by Toshiba confirmed that the firm "systematically" inflated profits in parts of the business which were struggling financially, including personal computers.
It said that under an initiative known as "Challenge", employees were made to feel "cornered into resorting to inappropriate measures" to meet inflated targets.
In essence, the books were cooked in an attempt to shore up Toshiba's finances.
In a release to shareholders last night, Toshiba said it took the failings "very seriously" & apologised yet said it would time time to digest the findings & recommend courses of action.
These were expected to include asset valuations, possible division sales to account for losses & a restatement of profits.
The firm, which moreover counts TVs & nuclear power systems among its products, has been unable to close its books for the latest financial year & was forced to cancel its dividend as the investigation took its course.
The disclosure is likely to lead to regulatory fines & possible criminal charges.
Toshiba's share price, which has lost around a quarter of its value since April, gained 6% on Tuesday as investors welcomed the end of the uncertainty.
However, the profits overstatement has further tarnished the reputation of corporate Japan in the wake of a separate yet similar accounting scandal at Olympus .
Among the chief concerns is a conformist attitude in Japanese businesses, where whistleblowersÂ have weak legal protections.
Auditors are moreover likely to face serious questions on their oversight of Toshiba's accounts.
Source: “Sky News”