Toshiba Corp. said Tuesday it has found improper accounting practices at its social infrastructure business affiliate in relation to electrical installation work.
Toshiba Infrastructure Systems & Solutions Corp. attributed expenses in connection with a money-losing project to another profitable business for four years through September 2017, with the total doctored costs amounting to 95 million yen ($838,000), Toshiba said.
The head of the affiliate that conducts electrical installation work ordered employees to cover up the losses, according to the Japanese conglomerate.
The malpractice came to light after a subcontractor consulted Toshiba over expenses. Toshiba said the announcement was late as an internal inspection took time.
Toshiba was hit by an accounting scandal in 2015 when it admitted that it had deliberately overstated profits for years.
© Kyodo News International, Inc., source Newswire