Toshiba Corp. is reportedly under investigation by the U.S. government over allegations of fraud in its Pennsylvania-based Westinghouse Electric nuclear business unit. The U.S. Justice Department and the Securities and Exchange Commission are looking into whether Toshiba hid $1.3 billion in losses, multiple news agencies have reported. Japan’s securities regulator found Toshiba had falsified financial statements and documents involving its issuance of corporate bonds. Toshiba published an internal review in 2015 that said management went along with falsifying the documents that said Westinghouse Electric had made more than $1 billion in profits since 2008. The unit had, in fact, lost $1.3 billion mostly due to a downturn in business following the 2011 Fukushima disaster.
Power Engineering 17th March 2016 read more »