World News

Nissan and Renault Chairman Carlos Ghosn arrested in corruption case

Nissan and Renault Chairman Carlos Ghosn arrested in corruption case
Nissan and Renault Chairman Carlos Ghosn arrested in corruption case

Nissan Motor Co Ltd said on Monday it had been going to terminate Carlos Ghosn out of his chairman’s post after discovering that he had used company money for personal usage and dedicated many other serious acts of misconduct.

The Japanese automaker said that according to a whistleblower report, it was researching potential improper procedures of Ghosn and Representative Director Greg Kelly for many years, which it had been cooperating with researchers.

“The analysis showed that over several years the two Ghosn and Kelly were reporting settlement amounts from the Tokyo Stock Exchange securities record which were significantly less than the true amount, so as to decrease the revealed amount of Carlos Ghosn’s settlement,” Nissan said in a statement.

It stated CEO Hiroto Saikawa would suggest to this Nissan board to eliminate Ghosn and Kelly.

The Yomiuri newspaper reported that Ghosn was detained by Tokyo prosecutors on suspicion of under-reporting his wages. Before, many outlets had reported that he was being contested.

Also Read: Latest U.S. Rhodes Scholar class consists of a Record number of Women

The information comes as a shock in Japan in which Ghosn, a rare overseas top executive, has been well regarded for having turned Nissan around from near bankruptcy. Ghosn is also chairman and leader of France’s Renault.

The Asahi newspaper reported on its site that prosecutors had started looking for the offices of Nissan’s headquarters and other locations on Monday evening.

The Tokyo District Public Prosecutors Office declined to comment.

Nissan said it’d short reporters on Monday evening. Spokesmen for both Renault and the Renault-Nissan-Mitsubishi Motors alliance didn’t immediately return messages and calls seeking comment on the reports.

An ouster of Ghosn,” 64, is bound to raise questions regarding the future of this alliance he personally formed and had vowed to combine using a deeper tie-up, before finally stepping back from its own operational direction.

Renault shares tumbled 13 percent in Paris to become one of the worst performing stocks in Europe.

Nissan’s German-listed securities dropped 12 percent.

Also Read: USA Gymnastics CEO Ron Galimore resigns

Brazilian-born, of Lebanese descent and a French citizen, he also started his career at Michelin in France, moving to Renault. He joined Nissan in 1999 after Renault purchased a controlling stake and became its CEO in 2001. Ghosn stayed in that place till annually.

In June, Renault shareholders declared Ghosn’s 7.4 million euro ($8.45 million) reimbursement for 2017. Along with this, he obtained 9.2 million euros in his final year since Nissan chief executive.

About the author

mm

Gene Weingarten

Founder & Director

I am old and cranky. I write "Below the Beltway," a weekly humor column that is nationally syndicated. With my son Dan and David Clarke, I write the daily newspaper comic strip Barney & Clyde, about a friendship between a billionaire and a bum. I am working on a book about the events of Sunday, December 28, 1986, a date chosen at random by picking numbers out of a hat. Yes, it's an insane idea, and yes, I can use all the tips I can get.

To get in touch with Gene for news reports he published you can email him on [email protected] or reach him out in social media linked below.

Add Comment

Click here to post a comment