Japanese multinational conglomerate corporation Toshiba has announced the establishing of a special investigation committee, which will check the appropriateness of projects undertaken by the company.
The committee, which will be chaired by the board of directors as well as experts from outside the company, will aim to check the appropriateness of the accounting and will address various issues arising during the course of the projects.
An investigation by the committee has revealed that the total amount of the contract cost was underestimated in certain infrastructure-related projects and thus contract losses were not recorded in a timely manner.
In order to further enhance the confidence of stakeholders, the company has decided to change the framework of the investigation from one conducted by the special investigation committee to one conducted by an independent investigation committee that follows the guidelines formed by the Japan Federation of Bar Associations.
The members of the independent investigation team are selected from among the experts in law and accounting, based on the recommendations from the external investigation committee. The company will also discuss with the independent investigation committee the results and future activity of the investigation by the special investigation committee.
Toshiba Corporation, a Fortune Global 500 company, channels world-class capabilities in advanced electronic and electrical product and systems into five strategic business domains: energy and infrastructure; community solutions; healthcare systems and services; electronic devices and components; and lifestyles products and services.
