Toshiba subsidiary made US$182 mil in ‘suspicious transactions’

TOKYO: Toshiba Corp is unable to confirm as much as 20 billion yen ($182 million) in sales at a subsidiary involving “suspicious transactions”, the electronics conglomerate said.

An internal investigation found that some transactions at Toshiba IT-Services Corp, a wholly owned subsidiary of yet another unit called Toshiba Digital Services Corp, couldn’t be confirmed, the company said in a statement Saturday.

Toshiba said it will eliminate the amount it has discovered so far from its financial statements for the fiscal third quarter.

In 2015, Toshiba had to restate 152 billion yen of pre-tax earnings covering a six-year period following an accounting scandal, after an internal probe revealed that management overstated profits.

Since then, the company has been in almost-constant turmoil, with executive resignations, multibillion-dollar losses in its US nuclear business and the sale of its crown-jewel memory-chip unit.

“There are unsettled debts and credits among parties of suspicious transactions,” the company said in Saturday’s 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”.

Toshiba IT-Services had 44 billion yen in revenue in the prior fiscal year, it said.

“The final impact on profit and revenue as well as facts relating to suspicious transactions are subject to further investigation,” the manufacturer said.