Toshiba detects JPY20bn of suspicious transactions at IT subsidiary
Toshiba Corp cannot confirm the existence of some transactions for multiple years at Toshiba IT-Services Corporation.
Toshiba Corp (TYO:6502) has revealed some suspicious transactions at Toshiba IT-Services Corporation (TSC), a wholly-owned subsidiary of Toshiba Digital Solutions.
In the notice, published on January 18, 2020, Toshiba Corp says that it “cannot confirm existence of some transactions for multiple years, of Toshiba IT-Services Corporation”. Toshiba Corp has made the findings through internal investigation with independent professionals including lawyers and accountants. The internal investigation was launched based on information regarding suspicious transactions, in the end of November 2019.
Based on th result of investigation so far, the amount of applicable transactions during the first half of fiscal year 2019 sums up to 20 billion yen, and the company intends to eliminate this sales amount from net sales in its Digital Solution segment of its consolidated financial statements of 3rd quarter of fiscal year 2019.
However, the final impact on profit and revenue as well as the facts relating to suspicious transaction are subject to further investigation. Furthermore, there are unsettled debt and credits among parties of suspicious transaction.
Given the outcome of the investigation so far, the company has not found concrete evidence proving that employees of TSC have played leading roles in the suspicious transactions.
