The source of the troubles was Westinghouse's purchase of CB&I Stone & Webster, and it spun out of control.
The source of the troubles was Westinghouse's purchase of CB&I Stone & Webster, and it spun out of control.
The whole saga is bizarre because CB&I sued Westinghouse claiming it was paid too little for S&W [1] a few months after the sale was finalized, and then a few months later sued Westinghouse again [2] seeking to wipe out their liabilities in the S&W's businesses.
[1] http://www.powermag.com/cbi-sues-westinghouse-over-2b-closin... [2] https://www.bna.com/chicago-bridge-iron-n73014448199/
It's fraud - people refusing to tell or put things down on official financial reports, writing false statements, signing false financial reports, using non GAAP, unusual accounting methods, etc. Also, audits and due diligence didn't uncover the magnitude of the problem. It took a whistleblower to get the story out to upper management.
https://www.thestar.com/business/2017/02/14/toshiba-chairman...
this article outlines the contract issues, but there were other issues at play at the same time
http://www.reuters.com/article/us-toshiba-accounting-working...
https://www.recode.net/2015/5/5/11562326/hps-5-billion-fraud...