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Toshiba unable to confirm ¥20B in suspicious transactions at subsidiary

Toshiba Corp. said it could not confirm the existence of suspicious transactions amounting to ¥20 billion in its Toshiba IT Services Corp. unit that occurred in the first half of fiscal year 2019.

The Japanese conglomerate discovered the transactions, which happened over several years, through an internal investigation that commenced at the end of November 2019.

Tokyo-based Toshiba plans to remove the ¥20 billion from net sales in its digital solution segment in the earnings statement for the third quarter of fiscal year 2019. The company noted that it will further look into the final impact of the transactions to profit and revenue.

Toshiba has not yet found concrete evidence proving that the unit's staff played lead roles in the suspicious transactions through the internal probe.

The company said there are unsettled debts and credits among the parties of the suspicious transactions.

As of Jan. 17, US$1 was equivalent to ¥110.17.