Staff feels ‘dismay’ at scandal: Nissan chief
Under-reporting may reach $71m
PARIS, Nov 24, (AFP): Nissan chief Hiroto Saikawa spoke of his “resentment and dismay” at revelations of misconduct by former company chief Carlos Ghosn in a letter to company employees.
Saikawa said he could not reveal all details of what had happened because the case was still under investigation.
But the company accused Ghosn of having under-reported compensation amounts, misrepresented the company’s investments and used company assets for personal use.
It also accused representative director Greg Kelly of having masterminded the fraud with Ghosn. The company dismissed Ghosn and Kelly on Thursday.
As someone who had devoted himself to the Nissan revival plan, “I am left with great resentment and dismay that is difficult to articulate”, wrote Saikawa.
“I truly regret, and would like to apologize for, us betraying and completely letting down our customers, business partners and other stakeholders who supported us after our revival,” he wrote.
The internal memo invited all staff to a “town hall” meeting Monday with Saikawa to discuss the future of the company.
Nissan’s former chairman Ghosn has since Monday been held in custody in Japan accused of having understated his income by some five billion yen ($44 million) between June 2011 and June 2015.
Japanese prosecutors have also accused Kelly of having a role in the offences.
Deputy chief prosecutor Shin Kukimoto said the Ghosn case was “one of the most serious types of crime” under Japan’s Financial Instruments Act, and that Ghosn could face up to 10 years in jail.
Although the Nissan board sacked Ghosn and Kelly, they have made it clear they want to their alliance with Renault and Mitsubishi survive.
The board of Mitsubishi Motors was reportedly set to meet on Monday to discuss Ghosn’s future.
Renault’s board has so far stood by Ghosn – naming his deputy Thierry Bollore to handle day-to-day business.
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former chairman under-reported his income by a total of $71 million – much more than initially suspected – Japanese media reported Friday.
The tycoon is now reportedly set to face a new charge from prosecutors after he was sacked as Nissan chairman Thursday to top a
Nissan’s spectacular fall from grace for the once-revered boss whose fall has stunned the business world.
Prosecutors arrested Ghosn on Monday, accusing him and fellow executive of understating the former chairman’s income by around five billion yen ($44 million) between June 2011 and June 2015.
But Ghosn is now suspected of under-reporting his earnings by another three billion yen for the following three fiscal years, the Asahi Shimbun and the Nikkei business daily reported.
Prosecutors are now planing to re-arrest him on charges of understating his income by a total of eight billion yen ($71 million) since June 2011, the Asahi said.
Immediate confirmation of the reports was not available.
Under Japanese law, suspects in jail can face additional arrest warrants, which can impose heavier charges.
Ghosn is also suspected of failing to report a profit of four billion yen through stock appreciation rights – a method for firms to give management a bonus on strong earnings, the Nikkei said.
Separately, the Kyodo news agency has reported that Nissan had paid $100,000 a year since 2002 to Ghosn’s sister who had no record of doing advisory work for the group.
Deputy chief prosecutor said the Ghosn case is “one of the most serious types of crime” under
Financial Instruments Act, and Ghosn could face a 10-year prison sentence.
His ouster is an astonishing turnaround for a titan of the auto sector who revived the Japanese brand and forged an alliance with Renault as well as domestic rival Mitsubishi Motors.
The French and Japanese finance ministers reiterated their “strong support” for the alliance at a meeting in Paris on Thursday. In a joint statement,
and said they both wanted “to maintain this winning cooperation”.
Asked about the fate of the alliance, Seko told reporters in “It is important for people concerned to deal with it after they agree and fully understand.”
Bollore, Ghosn’s deputy on Thursday pledged “to stay focused on our mission to preserve the interests of Renault and the sustainability of the alliance”.
The board of Mitsubishi Motors was reportedly set to meet on Monday to discuss Ghosn’s future.