Economy

Renault, Nissan head Ghosn arrested for financial misconduct

Renault, Nissan head Ghosn arrested for financial misconduct

France urged Renault on Tuesday to replace CEO Carlos Ghosn after his arrest in Japan on financial misconduct allegations, which sources said formed part of an investigation extending to its broader car-making alliance with Nissan.

Ghosn was arrested on his arrival in Japan on Monday after an internal investigation at Nissan revealed "significant acts of misconduct".

A press release by the prosecutor's office in Tokyo said Mr Ghosn and Mr Kelly collaborated to under-report Mr Ghosn's income as 4.99 billion yen even though it actually was nearly 10 billion yen, submitting falsified securities statements to the regional finance bureau.

Japanese public broadcaster NHK also said Nissan had paid billions of yen to buy and renovate homes for Ghosn in Rio de Janeiro, Beirut, Paris and Amsterdam, citing unnamed sources. Saikawa said he couldn't elaborate as the cases are being investigated by prosecutors, who have declined to comment.

In the five-year period, the prosecutors believe Ghosn actually received a total of almost 10 billion yen in compensation but Nissan's annual securities reports show that his remuneration amounted to about 4.98 billion yen. The properties had no business goal and were not listed as benefits in filings to the Tokyo bourse, NHK said.

"I don't think there is anyone else on Earth like Ghosn who could run Renault, Nissan and Mitsubishi", he told reporters in Tokyo. The Asahi newspaper reported that he and Kelly had submitted to prosecutors' questions after getting off a plane yesterday afternoon at Tokyo's Haneda Airport.

Ghosn and Kelly have not been seen since and their exact whereabouts are not known.

How did this come to light?

More news: Airbnb ban on homes in West Bank settlements

The Japanese vehicle manufacturer said the allegations included significantly under reporting his compensation and misusing company assets. Nissan doesn't break out individual board members' compensation in its annual report.

The prosecutors and a Nissan official cooperating with the investigation have struck a plea bargaining agreement, according to the sources. The Japanese company said it was proposing that its board "promptly" remove Ghosn from that position.

After becoming CEO of a struggling Nissan in 2001, Ghosn was hailed as the automaker's savior by implementing an aggressive cost-cutting plan.

Yesterday, Saikawa acknowledged that too much power had been concentrated in Ghosn.

Nissan told Renault's board on Monday it had evidence of potential wrongdoing at Renault-Nissan BV, the Dutch venture overseeing alliance operations under Renault's ultimate control, three people with knowledge of the matter said.

France's finance minister Bruno Le Maire said on Tuesday that after his arrest, Ghosn was no longer fit to be at the helm of Renault.

How could he pull off this alleged deception?

Repeatedly questioned over how the company could have let financial misconduct persist for so long, Saikawa said systems inside Nissan limited transparency. Police can hold suspects without charge for days, but prosecutors have only 48 hours to decide whether to press charges. Tsutomu Nakamura, a former prosecutor at the Tokyo District Public Prosecutors office, predicted that Ghosn will be indicted on Friday, Dec. 7, the last working day before that maximum period.


  • APEC leaders divided after US-China spat

    APEC leaders divided after US-China spat

    It goes beyond that to freedom of navigation in the seas, concerns about human rights", Pence told reporters travelling with him. They settled on a statement to be issued, instead, by the meeting's chair, Papua New Guinea Prime Minister Peter O'Neill.
    Nancy Pelosi Confident She Has Votes For Speaker As Opponents Go Public

    Nancy Pelosi Confident She Has Votes For Speaker As Opponents Go Public

    But Cartwright added that he wants to hear the arguments when the caucus meets privately next week to vote on the leadership team. However, she believes "it's time for a new one". "Leader Pelosi remains confident in her support", said spokesman Drew Hammill.
    Deepika Padukone and Ranveer Singh tie the knot in Italy

    Deepika Padukone and Ranveer Singh tie the knot in Italy

    Only a few minutes ago, we shared with you a group photo of Ranveer Singh and Deepika Padukone with the guests from the wedding .
  • Finns drag Trump comments on social media

    Finns drag Trump comments on social media

    The Woolsey Fire outside of Los Angeles in Southern California , meanwhile, is 82 percent contained and has consumed 98,362 acres. He walked side by side with Paradise Mayor Jody Jones and surveyed the devastation of the once lively-town in person.
    Microsoft is said to be building an Xbox with no disc drive

    Microsoft is said to be building an Xbox with no disc drive

    I'm also not exactly sure what I think about the report claiming 2020 will be the launch of a new Xbox console. All this could launch as early as spring 2019, yet the firm isn't committing to a launch window internally.
    Roger Federer shocks fans with embarrassing blunder

    Roger Federer shocks fans with embarrassing blunder

    The Swiss star suffered a shock opening-round defeat against Nishikori before seeing off Thiem in straight sets in round two. Federer said he had seen everything "negative" against Nishikori, "today I was more positive and I love playing in London".
  • Netanyahu takes on defence post amid call for early Israeli election

    Netanyahu takes on defence post amid call for early Israeli election

    On Sunday night, Netanyahu announced he would take over as defense minister and that early elections would be bad for the country. The crisis was set into motion with Lieberman's resignation over the ceasefire, which he labelled "capitulating to terror".
    Donald Trump reluctant to blame Saudi Crown Prince of ordering Khashoggi murder

    Donald Trump reluctant to blame Saudi Crown Prince of ordering Khashoggi murder

    About the killing itself, Trump told presenter Chris Wallace: "It was very violent, very vicious and awful ". Trump said " we haven't been briefed yet " on the CIA's Khashoggi findings.
    England v Croatia: Ivan Rakitic ruled out of key Nations League fixture

    England v Croatia: Ivan Rakitic ruled out of key Nations League fixture

    There is also no place for Jesse Lingard, another player who has come back from injury in recent weeks and started against the US. So the equation is fairly simple for Zlatko Dalić and the Croatian team, beat England and a semi-final spot is assured.
  • Twitter erupts after New Zealand clinch a thrilling victory over Pakistan

    Twitter erupts after New Zealand clinch a thrilling victory over Pakistan

    After the match he admitted his achievement hadn't really sunk in. "It's a great advertisement for test cricket ". The hosts were back in the driver's seat, having reduced New Zealand to 108/4 at their adopted fortress.
    Windows 10 October Update Finally Launching to Public

    Windows 10 October Update Finally Launching to Public

    When you select Light under Settings Personalization Colors , the expectation is that the system color would be lighter too. In either case, it's a good idea to get in the habit of backing up your data before installing Windows updates .
    CNN reporter returns to White House after pass reinstated

    CNN reporter returns to White House after pass reinstated

    Trump spokeswoman Sarah Sanders said "in response to the court, we will temporarily reinstate the reporter´s hard pass". Shortly after the ruling, Acosta returned to the White House, telling fellow journalists that "this was a test".