Journal Pioneer

Ghosn’s journey: Star executive to masked suspect

- ELAINE KURTENBACH

Carlos Ghosn, the star auto executive credited with rescuing both Renault and Nissan, left a drab Tokyo detention centre Wednesday after more than three months in custody, his identify obscured by a surgical mask, hat and constructi­on worker’s outfit.

The jet-setting turnaround wizard was pursued by TV news helicopter­s as he travelled in a tiny Suzuki van through Tokyo streets after his release on 1 billion yen (nearly $9 million) bail

- a peculiar and humbling episode in a journey that has cast light on aspects of Japanese corporate life and its justice system that set the country apart.

Brazilian-born and raised in Lebanon, Ghosn had been held since his arrest on Nov. 19 shortly after he arrived at a Tokyo airport aboard a private jet. He has stoutly maintained his innocence and vowed to fight charges he falsified financial reports and committed breach of trust.

No date has been set for his trial, which will pit the proud, cosmopolit­an European and his star legal team against prosecutor­s whose determinat­ion to prove their case was evident in their crusade to keep Ghosn isolated in the detention centre. Only after he agreed to install a surveillan­ce camera at his door and not use the internet, and of course not flee Japan, was he able to win release on bail, on his third attempt.

The timing of Ghosn’s release allows him to spend his 65th birthday, on Saturday, with family.

Ghosn proved his mettle at tire company Michelin before he was recruited to help restore profitabil­ity at Renault AG, which is 15 per cent owned by the French government. Dispatched by Renault in 1999 to help turn around its alliance partner Nissan, he delivered. Ghosn bet early on that emissions crackdowns would eventually bring an end to the era of gasoline and diesel engines, so he has championed bringing electric and autonomous cars to the masses, fighting resistance within both companies.

He won a rare degree of admiration and respect in Japan at a time when foreign top executives were a rarity. But two decades on, the welcome wore thin.

Ghosn, who led the RenaultNis­san-Mitsubishi Motors alliance, found himself the subject of an internal investigat­ion, initiated by whistleblo­wers, Nissan says, into his compensati­on and handling of company funds.

Ghosn’s star-level pay has drawn attention, since executives in Japan tend to be paid far less than their internatio­nal counterpar­ts. Some of the charges against him relate to reporting of his deferred income, promised as money, stocks and other items for a later date, including after retirement - money Ghosn says was never paid, or even agreed upon.

Nissan, which makes the March subcompact, Leaf electric car and Infiniti luxury models, says its internal probe found Ghosn hid his pay and misused company funds and assets for personal gain. It dismissed him as chairman, though he remains on the company’s board pending a shareholde­rs meeting.

 ?? AP PHOTO ?? Former Nissan chairman Carlos Ghosn, front, travels in a car Wednesday, in Tokyo, after posting 1 billion yen ($8.9 million) in bail once an appeal by prosecutor­s against his release was rejected.
AP PHOTO Former Nissan chairman Carlos Ghosn, front, travels in a car Wednesday, in Tokyo, after posting 1 billion yen ($8.9 million) in bail once an appeal by prosecutor­s against his release was rejected.

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