Tokyo — On November 21, 2018, Japanese prosecutors were reported to be weighing whether Nissan Motor Co could face a case after the arrest of chairman Carlos Ghosn on suspicion of financial misconduct, according to the Asahi Shimbun.
Ghosn, one of the best-known figures in the global auto industry, was arrested on Monday after Nissan’s internal investigations alleged years of wrongdoing, including personal use of company money and under-reporting earnings. Nissan said it planned to remove him as chairman on Thursday.
Prosecutors said Ghosn and Representative Director Greg Kelly conspired to understate Ghosn’s compensation over five years starting in fiscal 2010, reporting about half of the actual 10 billion yen ($88.65 million). That period covers 2010, and the allegations also drew in later reporting about pay that had gone unreported through 2015.
The Asahi, citing unnamed sources, said the misstating could mean the company itself bore responsibility and that prosecutors were considering building a case against Nissan. Prosecutors were not immediately available for comment, and Nissan declined to comment on the report.
There has been no comment from Ghosn or Kelly on the allegations, including a separate Nikkei report on Tuesday that Ghosn received share price-linked compensation of about 4 billion yen over a five-year period to March 2015, but that it was not disclosed in Nissan’s financial reports. Reuters said it could not contact Ghosn or Kelly for comment.
Ghosn also served as chairman and chief executive of Renault, Nissan’s French partner, and as chairman of Mitsubishi Motors Corp, the third member of the alliance. Renault on Tuesday named its chief operating officer and a senior board member to stand in for Ghosn, while stopping short of firing him as it awaited more detail on the allegations.
Nissan shares rose 0.6 percent on Wednesday after falling nearly 6 percent the previous day.
