Toshiba makes Muromachi a permie

toshiba-11q4-C655D-S5330-cover-lgTroubled electronics maker Toshiba has decided that its interim President Masashi Muromachi is the bloke to steer it through its current financial crisis.

Muromachi took over after CEO Hisao Tanaka resigned after an independent probe found that he had been aware the company had inflated its profits by $1.2 billion over several years.

Executives have also been resigning over their roles in the country’s biggest accounting scandal in years.

While better known for its IT products, in Japan the outfit was infamous for supplying reactors to the Fukushima nuclear power station.

The company’s appointments committee, which includes external directors decided on the new appointment. Toshiba will propose the plan at an extraordinary shareholders’ meeting in September.

Seen as a “safe pair of hands”, Muromachi was not implicated in the accounting irregularities that saw the departure of eight executives last week.

The third-party committee’s report said Tanaka and vice chairman Norio Sasaki pressured business divisions to meet difficult targets. They knew they were overstating profits and delaying reporting losses.

Much of the problem appears to be the Japanese culture of never questioning authority.  Although many Japanese shareholders would wish that if Toshiba was going to follow any tradition, it should be one were dishonoured CEOs should gut themselves in the car park.