Did Ghosn benefit from payment to Palace of Versailles?
Renault looking into whether company funds were used for party for former CEO
PARIS—Renault SA said it has found evidence that Carlos Ghosn may have misused company funds to pay for a party to celebrate his marriage, the first time the French auto maker has disclosed possible inappropriate behavior by its former chairman and chief executive.
The French auto maker said Thursday that Mr. Ghosn may have personally benefited to the tune of 50,000 euros ($57,000) from a payment the company made under a sponsorship agreement with the Palace of Versailles. It is looking into whether company funds were used to pay for a private party held in the fall of 2016 to celebrate Mr. Ghosn’s marriage to his second wife as well as her birthday, according to a person familiar with the matter.
The company said it has reported the payment to French authorities.
A Ghosn family representative declined to comment.
The scrutiny of Mr. Ghosn’s party marks a potential turning point for Renault. The company kept Mr. Ghosn on as its chairman and CEO until his resignation in late January, months after his Nov. 19 arrest in Tokyo. Japanese prosecutors charged Mr. Ghosn, who remains in jail, with underreporting his compensation in eight years of Nissan financial statements and with causing Nissan Motor Co.—where he was once chairman and CEO—to pay the company of a Saudi friend who helped him with a personal financial problem. Mr. Ghosn has denied any wrongdoing.
Under pressure from Nissan, Renault launched its own internal probe into Mr. Ghosn’s remuneration
and use of company assets.
Thursday’s disclosure marks the first findings announced from that inquiry.
Renault signed a sponsorship deal in June 2016 with the Palace of Versailles, with the funds earmarked to pay for renovations of the palace, a person familiar with the matter said. As part of that contract, Renault was given a number of benefits, including the rental of palace facilities.
Renault found one document from the Palace of Versailles valuing the rental of the Grand Trianon, a château on the palace’s
sprawling grounds, at 50,000 euros.
The document states the rental occurred on Oct. 8, 2016, the same day Mr. Ghosn held his party.
One person who attended the black-tie party said it was held at the Grand Trianon. About 120 guests celebrated among pastry towers and tables adorned with candelabras under a giant chandelier, the person said.
“The elements gathered so far require additional checks to be carried out,” Renault said. The company also found a receipt from a third-party organizer of
the event stating the rental was “a gift from Versailles,” according to the person familiar with the matter.
That could mean the rental was a gift the Palace of Versailles made privately to Mr. Ghosn, the person said.
The Palace of Versailles declined to comment on the thirdparty receipt.
The palace said Renault paid 2.3 million euros to sponsor the restoration of the “Salon de la Paix,” a gilded reception room adjacent to the apartment of Marie Antoinette with a clear view of the
gardens.
As part of the sponsorship, the palace said, Renault was entitled to 25% of the sponsorship’s amount in benefits, and the company asked to rent the Grand Trianon on Oct. 8, 2016, the statement says. It added that 50,000 euros is the standard rate for the rental.
Renault’s probe into Mr. Ghosn is drawing to a close, people familiar with the matter said.
The Renault board was updated on its findings at a meeting Wednesday, one of the people said.