Toshiba US subsidiaries face investigation

toshiba Nand flash memory
Japanese technology giant Toshiba on Friday admitted that its American subsidiaries are being investigated by the US Justice Department for an accounting scandal that was recently revealed.

Toshiba representatives said the companies, including Westinghouse, have received requests from these two entities demanding information on accounting practices, EFE news reported.

In November 2015, the Tokyo Stock Exchange asked Toshiba for data on the business performance of Westinghouse during the 2012 fiscal year.

As a result, the Tokyo-based company admitted Westinghouse’s assets had depreciated by around $1.3 million between 2012 and 2013, which did not reflect in the balance sheets of the nuclear energy giant, acquired by the Japanese group in 2006.

This discovery was part of the accounting scandal that began coming to light in February last year, which reveals the company overestimated its revenue from sales between 2012 and 2013 by around $2 billion.

The company, plagued by several loss-making units, has also embarked on a restructuring programme under which it will cut thousands of jobs and will sell its subsidiary specialising in medical equipment and home appliances to the Japanese Canon and the Midea China, respectively.