GHOSN HIT BY NEW CHARGES
Prosecutors charge ex-Nissan boss with funnelling company funds for personal gain
CARLOS Ghosn was indicted on new charges of misdirecting company money for his personal use, the most serious allegations yet against the former chairman of Nissan Motor Co.
Using foreign corporate entities in 2017 and last year, Nissan lost US$5 million (RM20.6 million) funnelled into accounts controlled by Ghosn, said prosecutors in a one-page statement yesterday.
While that was less than the amount they initially indicated when they arrested Ghosn again earlier this month, the allegations are the first to suggest that the former global auto executive directly transferred money from the company for personal gain.
After Ghosn’s first arrest, Renault and Nissan uncovered payments made through companies in Oman and Lebanon that allegedly were used for his personal gain, including corporate jets
and a yacht.
Ghosn briefly won his freedom on bail last month, but was arrested and jailed again on allegations that eventually led to yesterday’s charges.
The executive, widely credited with saving Nissan from failure and bringing it together with Renault SA and Mitsubishi Motors Corp, was first arrested in November, sending shockwaves across Japan, France and the global car industry.
The former chairman has denied the prior charges against him, blaming them on “a dirty game” by Nissan executives determined to oust him from the alliance.
Ghosn has denied the previously filed indictments against him for transferring personal trading losses to Nissan, under-reporting his income and falsifying documents.
Yesterday, Nissan also filed a criminal complaint against Ghosn for his actions.
The Yokohama-based carmaker sent a statement to prosecutors saying it determined that payments made by Nissan to an overseas vehicle sales company via a subsidiary “were in fact directed by Ghosn for his personal enrichment and were not necessary from a business standpoint”.
“Nissan is requesting appropriately strict penalties,” said the carmaker.
“Nissan takes this situation seriously and expresses sincere regret for any concern caused to our valued stakeholders.”
Nissan, which swiftly removed Ghosn as chairman days after his first arrest, is seeking to turn over a tumultuous chapter in its ties with Renault.
The detention of the former global car titan threatened to derail their partnership, the world’s biggest auto alliance. Since then the three partners set up a new governance structure, led by Renault chairman Jean-Dominique Senard, designed for smoother and more equitable decisionmaking.
Another lengthy stay in prison, with limited access to his lawyers, could make it harder for Ghosn to prepare for a trial that may start later this year or next year.