What the decline of Toshiba means

One of the major electrical companies, Toshiba, is at risk of bankruptcy. Its capital adequacy ratio has fallen down to 8% for now. They have not shown what caused it in detail yet. However, the big deficit due to purchasing Westing House Corp. , which has forced the management team to publish the window dressed accounts in a large scale, must be one of the reason. In such a financial crisis, there seem to have been battles among the management team for years in this company, as some sources say. It is amazing a serious economical crime has been committed by the management staff of such a big company.

Taizo Nishimuro, the present president of Japan Post, has lead this company in 2000s. He was, while managing Toshiba, the head of an economical council for the government those days. That council has published a report in 2008 that medical doctors should be compulsorily assigned to remote isolated places where they needed medical services. I felt it was not fair for the authority to force us that way. I have sent a mail of protest to him. He seemed to have received a number of protests from doctors, so that he replied to me in a printed mail excusing that it had not been his own opinion but a conclusion of that public council and it had not had any relationship with his company. He might be right that it had been plotted by the government/bureaucrats at that time.

I was surprised to know such a management top had cooperated with the authority as for publishing a policy regarding medical system etc through the council. They must have done the same thing as for the policy of nuclear power engineering industry. That has failed and has left a big amount of red which a company like Toshiba could not deal with.

We should learn that such hidden cooperation between the private sector and the public authority won't work at all. The management tops in both sides should be punished. The investment to WH Corp. and related criminal behaviour as for its account should be made public. The cooperation of private public sectors for nuclear power industry is out of date. The nuclear power industry won't be a growing field any longer.