Nissan chairman Carlos Ghosn arrested on suspicion of falsifying financial reports.
London, November 19, 2018 (AltAfrica)-The Nissan chairman has been arrested on suspicion of falsifying financial reports. Brazilian-born Carlos Ghosn has rescued the Japanese automaker from near bankruptcy over the last 18 years.
Nissan Motor Company said on Monday it was moving to fire Carlos Ghosn from his post as chairman after Japanese media reported he was arrested for using company money for personal use and engaging in other serious acts of misconduct.
Ghosn, who heads the Renault-Nissan-Mitsubishi alliance, is suspected of failing to report hundreds of millions of yen (millions of euros, dollars) in income. He was arrested in Tokyo on violation of financial regulations including misreporting his income.
Reporters gather at Nissan’s global HQ in Yokohama, Japan on Monday evening ahead of a news conference
Shares in French carmaker Renault plunged as much as 12 percent as the news of his alleged misconduct broke – Renault’s lowest level in about four years.
Nissan said the violations were discovered during an investigation over several months that was instigated by a whistleblower.
Ghosn’s arrrest comes just five months after he narrowly won a shareholder vote at Renault over his 7.4 million euro ($8.5 million) pay package for 2017, after losing a 2016 vote. The 64-year-old helped turn the carmaker back from the brink of financial ruin 17 years ago and turned it into a global powerhouse, pushing it into electric cars.
The allegations also involve Nissan’s representative director Greg Kelly.
Hiroto Saikawa, the CEO of Japan’s second-largest carmaker, planned to propose at a board meeting that Ghosn and Kelly both be removed from their posts.
Nissan said Ghosn and Kelly “have been reporting compensation amounts in the Tokyo Stock Exchange securities report that were less than the actual amount, in order to reduce the disclosed amount of Carlos Ghosn’s compensation.”
“Nissan deeply apologizes for causing great concern to our shareholders and stakeholders. We will continue our work to identify our governance and compliance issues, and to take appropriate measures,” Nissan said in a statement.
Nissan plans to hold a news conference on Monday evening.
kw/ng (AP, dpa, Reuters)