Prosecutors set to indict Ghosn and Nissan as CEO's role in focus: sources
Tokyo prosecutors are due to indict ousted Nissan Motor Chairman Carlos Ghosn as well as the automaker itself on Monday, sources said, intensifying scrutiny of CEO Hiroto Saikawa's role in the financial misconduct scandal.
Ghosn was arrested on Nov. 19 on suspicion of conspiring to understate his compensation by about half of the actual 10 billion yen ($88 million) over five years from 2010. Nissan has said the misconduct was masterminded by the once-celebrated executive with the help of former Representative Director Greg Kelly.
Tokyo authorities plan to re-arrest the two executives, the sources said, declining to be named as they were not authorized to speak with media. Media reports have said the fresh crime was for three additional years of under-reported income. The two would then remain in custody without bail. Nissan itself is also likely to be indicted for making false statements in an annual report, they said. A separate source said there were concerns running through the company that Chief Executive Hiroto Saikawa and others may also be indicted.
Earlier, Nissan sought to block Carlos Ghosn from accessing his company-owned apartment in Rio de Janeiro, fearing that he would remove or destroy evidence related to his misconduct.
Related Stories
Paris informs Tokyo it wants Renault and Nissan to integrate[*]
A French government delegation has informed Tokyo that it would seek an integration of Renault and Nissan, most likely under the umbrella of a single holding company, the Nikkei reported on Sunday.
The delegation, which included French government-designated Renault director Martin Vial, also said that it wanted to name Nissan's next chairman, according to the report. Nissan was not immediately available for comment.
Nissan ex-chairman Carlos Ghosn, arrested and detained in Tokyo since Nov. 19, has been indicted in Japan on charges of under-reporting his salary for eight years through March 2018, and temporarily transferring personal investment losses to Nissan during the global financial crisis. Ghosn has denied all charges.
[*] Noscript caused issues for me; same story can be found at U.S. News & World Report.
Previously: Nissan Motor Chairman and Others Set to be Indicted
Ghosn: Bail conditions revealed by lawyer
The lawyer for former Nissan chief Carlos Ghosn has revealed the terms his client had to meet to secure his initial release from custody on bail. Conditions the 65-year-old had faced included using a sole computer, in his lawyer's office, and one mobile phone. A 24-hour surveillance camera also had to be installed at the entrance of his court-approved permanent residence.
Mr Ghosn was re-arrested in Tokyo last week, pending trial over claims of financial misconduct. He has been detained over suspicions that he tried to enrich himself at the carmaker's expense. In a statement, Mr Ghosn - who denies any wrongdoing - said his re-arrest was "outrageous and arbitrary".
Previously: Nissan Motor Chairman and Others Set to be Indicted
French Government Seeks Integration of Renault and Nissan Automakers
Former Nissan Chairman Carlos Ghosn Flees from Japan to Lebanon
Carlos Ghosn, Nissan's ex-head, flees Japan to Lebanon
Former Nissan boss Carlos Ghosn has travelled to Lebanon after fleeing Japan, where he faces a trial over allegations of financial misconduct. In a statement, Mr Ghosn said he had not fled justice but "escaped injustice and political persecution".
His lawyer said he was "dumbfounded" by the news and that he had not recently spoken with his client. It is unclear how the former chief executive officer managed to leave, as he was barred from travelling abroad.
Mr Ghosn, who has an estimated net worth of $120m (£91m), was one of the most powerful figures in the global car industry until his arrest in November 2018. He denies any wrongdoing. His case has attracted global attention and his months-long detention led to increased scrutiny of Japan's justice system.
The 65-year-old was born in Brazil to parents of Lebanese descent and was raised in Beirut, before travelling to France for further education. He holds French, Brazilian and Lebanese passports.
(Score: 0) by Anonymous Coward on Monday December 10 2018, @03:47PM (5 children)
Ghosn saved Nissan from bankruptcy, but he also replaced the culture with modern European business theory. Among other things, the official language at Nissan was changed to a language foreign to Japan and France, English.
I would not be surprised if the powerful and connected took great offense at this, and have orchestrated the accusations of financial irregularities to re-Japanify the company.
(Score: 2) by bob_super on Monday December 10 2018, @05:37PM (3 children)
The name of the chairman does not change the controlling stake owned by Renault.
(Score: 0) by Anonymous Coward on Monday December 10 2018, @05:45PM (2 children)
No, but if your execs are at risk of arbitrary detention, you may want to get rid of your Japanese subsidiary quickly.
(Score: 2) by bob_super on Monday December 10 2018, @06:06PM (1 child)
"Oh no, we might get caught if we keep doing something illegal! Let's commit suicide!"
(Score: 0) by Anonymous Coward on Tuesday December 11 2018, @07:37AM
* The irony is that suicide is both illegal and something you'll be caught having done.
(Score: 2) by VLM on Tuesday December 11 2018, @01:00PM
Usually the Japanese govt cooperates very closely with Japanese industry in situations like this; obviously he must have some something to offend someone in the Japanese equivalent of the deep state. I haven't found anything obvious in the financial news, yet.
Your theory about culture is not totally unrealistic but in practice they seem to get more wound up about financial issues.
(Score: 0) by Anonymous Coward on Monday December 10 2018, @04:31PM (3 children)
how much money someone makes is none of the governments fucking business. if i had $88 million the tax agency wouldn't even exist.
(Score: 0) by Anonymous Coward on Monday December 10 2018, @04:52PM
Famous last words
(Score: 1, Insightful) by Anonymous Coward on Monday December 10 2018, @09:05PM (1 child)
>how much money someone makes is none of the governments fucking business.
Actually it does matter. 'Winner takes all' (and CEO's like this playing this game) causes a lot of social disorder, unrest and poverty that the government ends up having to pay for.
Japan (and some other socialist countries) take more effort than the USA to ensure that pay is equitably distributed among those who produce the wealth. This reduces poverty, and ensures that whole impoverished underclasses and ghettos don't exist in Japan (which pretty much they don't) in the way they do in the USA. This used to be the way it was in the USA by the way too back in the 50s and 60s, and arguably the middle class was much better off then than it is now..
It is absolutely the government's business.
(Score: 3, Insightful) by PartTimeZombie on Monday December 10 2018, @09:26PM
While your comment is +1 Insightful, you really shouldn't feed the trolls.
is only one step away from OMG! VOLUNTARY CONTRACTS ONLY!!11!! and MEN WITH GUNS!!11!!
and other such childish libertarian nonsense.
(Score: 2) by Phoenix666 on Monday December 10 2018, @05:44PM (1 child)
Ghosn pushed the Nissan Leaf very hard, which its buyers have been quite happy with. Tesla has gotten most of the limelight in pushing the conversion to electric cars, but Nissan's Leaf has been an important component of the argument that EVs can work for the everyman since long before Tesla brought its Model 3 to market. It would be a pity in all this business with Ghosn if the Leaf were to be cut and the company to retrench in ICEs.
Otherwise, corrupt CEO gets taken down, which is awesome. Should happen to more of his ilk.
Washington DC delenda est.
(Score: 2) by PartTimeZombie on Monday December 10 2018, @09:29PM
The Nissan Leaf is very popular around my way also.
Surely they've invested huge amount of money tooling up to produce them, so wouldn't want to back out of that? Assuming Nissan makes money selling them of course.
(Score: 2) by Rosco P. Coltrane on Monday December 10 2018, @11:59PM
I'm shocked!