Police search Renault headquarters for evidence related to Ghosn probe
French automaker is fully co-operating with investigation into former chief executive
PARIS—Police on Wednesday searched Renault SA’s headquarters for evidence related to the continuing investigation into former Chief Executive Carlos Ghosn, according to people familiar with the matter.
More than 20 officers conducted the search at the French auto maker’s headquarters in Boulogne-Billancourt, in the western suburbs of Paris, these people said. Renault and the prosecutors office, which is overseeing the investigation, confirmed the search but didn’t give further details.
In a statement, Renault said it is “fully cooperating with the authorities.” A lawyer for Mr. Ghosn, Jean-Yves Le Borgne, said the search was a normal part of the investigation. “The truth should be sought everywhere, so I don’t see why they would have abstained from this search,” he said.
Mr. Ghosn was first arrested on Nov. 19 in Japan for alleged financial misconduct, which he denies. Renault was initially circumspect about Nissan Motor Co.’s accusations against Mr. Ghosn; but under pressure from its Japanese partner, the company launched its own probe into its former head’s remuneration and use of company assets.
French prosecutors opened an investigation in February after Renault turned up evidence that Mr. Ghosn had allegedly misused a company sponsorship to stage a black-tie party at a Versailles château to celebrate his wife’s birthday.
Renault said at the time that Mr. Ghosn may have personally benefited to the tune of 50,000 euros ($56,457 U.S.) from a sponsorship agreement that Renault had entered into with the Palace of Versailles.
Mr. Le Borgne, the lawyer for Mr. Ghosn, said at the time the executive received free use of space at Versailles but wasn’t aware it would affect benefits Renault received under the sponsorship agreement. The lawyer added that the auto titan would pay Versailles for the space to ensure there would be no financial damage to Renault.
Since then, Renault has notified French prosecutors about payments it made to an Omani car distributor over several years, following a request for legal assistance made by Japan to France. Nissan and Japanese prosecutors have investigated whether Mr. Ghosn funneled millions of dollars of company funds through the Omani distributor for personal use, possibly including the purchase of a yacht, according to people familiar with the matter.
A lawyer for Mr. Ghosn has denied wrongdoing, adding that the transfers from Renault and Nissan to the Omani distributor were “normal payments linked to business.”
More recently, the French prosecutor’s probe has been widened to include spending by Mr. Ghosn at Renault’s Dutch joint venture with Nissan, according to one of the people familiar with the matter. Renault’s board last month said Mr. Ghosn ran up millions of dollars in questionable expenses at the joint venture, citing his corporate travel and donations he made to nonprofit organizations.
Through a spokesman, Mr. Ghosn disputed that he billed any personal expenses to his employers. “This is part of a well-orchestrated effort to turn Mr. Ghosn into a caricature and dismantle his reputation for integrity and excellence built over several decades,” the spokesman said in April. “All of these expenses were both authorized and tied to legitimate business purposes.”
The French investigation into Mr. Ghosn is being carried out by Oclciff, the police’s anticorruption and financial crime department. One of Mr. Ghosn’s properties near Paris was also searched in connection with the probe last month.