Head of Japan stock exchanges ‘ashamed ‘ over Toshiba woes

Jun 12, 2015, 12:30 AM

TOKYO (AP) — The longtime head of Japan’s stock exchange says he is “ashamed” over a recent accounting scandal at electronics and industrial conglomerate Toshiba Corp.

Atsushi Saito, CEO of Japan Exchange Group Inc., said Friday he was puzzled by Toshiba’s apparent laxity over its accounting and he hoped auditors and accounting firms would be more vigilant.

“In the case of Toshiba, to be honest I feel very ashamed. It’s one of the leading companies in Japan and they must have been mentors or leaders of Japanese industry,” Saito told a news conference.

Toshiba announced last month that it was expanding a probe into alleged underreporting of project costs and losses and setting up a committee to investigate further.

This week, the company’s CEO, Hisao Tanaka, issued a letter to shareholders apologizing for the incident and pledging that the company including its subsidiaries would cooperate with the committee and “thoroughly heed its results and recommendations and reflect them in the company’s management and operations.”

Toshiba’s shares fell 0.9 percent Friday in trading on the Tokyo Stock Exchange, recovering from larger losses earlier in the day triggered by a report in the financial newspaper Nikkei Shimbun that the company is likely to admit to inadequate internal controls.

Saito became president of the Tokyo Stock Exchange in 2007 and was appointed CEO of the Japan Exchange Group when it was formed in a merger of the Tokyo Stock Exchange Group Inc. and the Osaka Stock Exchange in 2013.

A veteran stock analyst who worked many years for major brokerage Nomura Securities, Saito said accounting standards can be vague when it comes to how the handle costs in long-term construction contracts.

But he said, “I am puzzled why they are so lazy about checking their report system.”

“The accounting houses recommended that their information was right,” he said “Auditors and accounting houses must be more professional and serious.”

Saito said that overall, Japanese companies are improving corporate governance in line with international standards.


Follow Elaine Kurtenbach: www.twitter.com/ekurtenbach

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


FILE - Treasury Secretary Janet Yellen speaks after touring the IRS New Carrolton Federal Building,...
Associated Press

Top US regulators say crypto poses financial stability risks

WASHINGTON (AP) — Top regulators on Monday recommended a series of new safeguards to ensure that a growing and unregulated cryptocurrency market doesn’t imperil U.S. financial stability. Among seven major recommendations, regulators called on Congress to pass legislation that would address the systemic risks caused by the growth of stablecoins, which are a form of […]
24 hours ago
Associated Press

Albania denies police system was attacked by Iranian hackers

TIRANA, Albania (AP) — Albanian authorities on Monday denied the country’s police system was hacked after local media reported that data on people being investigated for crimes was released from an Iranian hacking group. Albanian media reported a leaked file with a list of suspected people, from allegedly the police database, who are being probed […]
24 hours ago
FILE - A sign stands on UnitedHealth Group Inc.'s campus in Minnetonka, Minn., on Oct. 16, 2012. Un...
Associated Press

UnitedHealth closes roughly $8B deal for Change Healthcare

MINNETONKA, Minn. (AP) — UnitedHealth Group said Monday that it completed its acquisition of Change Healthcare, closing the roughly $8 billion deal a couple weeks after a judge rejected a challenge from federal regulators. UnitedHealth is merging the technology company with its Optum segment. The health care giant said that combination will simplify clinical, administrative […]
24 hours ago
This photo provided by Jeffrey Chester, shows Chester, executive director of the Center for Digital...
Associated Press

Insider Q&A: Privacy advocate sees growing public alarm

WASHINGTON (AP) — Jeffrey Chester, executive director of the Center for Digital Democracy, has advocated in Washington for privacy protection for 25 years, warning about threats to online privacy. The Associated Press spoke recently with Chester about growing public concern and official action. Q: The Federal Trade Commission is considering crafting rules to police what […]
24 hours ago
Associated Press

Report: Mexico continued to use spyware against activists

MEXICO CITY (AP) — The Mexican government or army has allegedly continued to use spyware designed to hack into the cellphones of activists, despite a pledge by President Andrés Manuel López Obrador to end such practices. Press freedom groups said Monday they found evidence of recent attempts to use the Israeli spyware program Pegasus against […]
24 hours ago
FILE - Apple CEO Tim Cook speaks at an Apple event on the campus of Apple's headquarters in Cuperti...
Associated Press

Whole lotta zeros: Apple Music crosses 100M song barrier

NEW YORK (AP) — Apple Music is about to cross a huge milestone, offering its eye-and-ear-popping 100 millionth song on the streaming service. The music giant tells The Associated Press that internal data indicates Apple Music will reach the heady mark on Monday. Every day, 20,000 singers and songwriters release music on the service. “It’s […]
24 hours ago

Sponsored Articles

Day & Night Air Conditioning, Heating and Plumbing

Here are 4 signs the HVAC unit needs to be replaced

Pool renovations and kitchen upgrades may seem enticing, but at the forefront of these investments arguably should be what residents use the most. In a state where summertime is sweltering, access to a functioning HVAC unit can be critical.
Sanderson Ford

Don’t let rising fuel prices stop you from traveling Arizona this summer

There's no better time to get out on the open road and see what the beautiful state of Arizona has to offer. But if the cost of gas is putting a cloud over your summer vacation plans, let Sanderson Ford help with their wide-range selection of electric vehicles.
Mayo Clinic Orthopedics and Sports Medicine

Why your student-athlete’s physical should be conducted by a sports medicine specialist

Dr. Anastasi from Mayo Clinic Orthopedics and Sports Medicine in Tempe answers some of the most common questions.
Head of Japan stock exchanges ‘ashamed ‘ over Toshiba woes