Ex-Nissan chief hauled before Japanese court over claims he falsified income in $34m scam
FORMER NISSAN chairman Carlos Ghosn has appeared in a Japanese court to assert his innocence.
Prosecutors in Tokyo charged Ghosn with falsifying financial reports in under-reporting his income.
Admired in the global auto industry for saving the Japanese automaker from near bankruptcy, Ghosn was to get his first chance to directly tell his side of the story at the courtroom hearing.
Appearing in a dark suit without a tie and wearing plastic slippers, the former chief looked thinner than he had before his arrest.
Presiding judge Yuichi Tada read out the charges and said Ghosn was being detained because he was considered a flight risk and there was the risk he may hide evidence.
“Your honour, I am innocent of the accusations against me,” Ghosn said. “I am wrongfully accused,” he added, reading from a prepared statement.
Ghosn said the company’s and his own finances were harmed by the global financial crisis a decade ago.
He said he had an option to retire and use his retirement fund to restore his personal finances, harmed by volatile foreign currency exchange moves. But he decided to stay and restore Nissan.
He has been accused of underreporting his pay by about 5 billion yen (£34m) over five years.
Family members say Ghosn maintains his innocence, asserting the money, promised as income for later, was never decided on or paid.
Ghosn said in a statement he had “acted honourably, legally and with the knowledge and approval of the appropriate executives inside the company with the sole purpose of supporting and strengthening Nissan”.
Nissan chief executive Hiroto Saikawa has publicly denounced Ghosn, accusing him of using company money and assets for personal gain.
Ghosn was sent in by Renault SA of France in 1999 and led a spectacular turnaround. Renault owns 43 per cent of Nissan, while Nissan owns 14 per cent of Renault.
Ghosn was remanded until January 11.