Showing posts with label Ghosn. Show all posts
Showing posts with label Ghosn. Show all posts

Tuesday, 31 December 2019

Ghosn flees to Lebanon, says won't be 'held hostage' by Japan's system

Ousted Nissan boss Carlos Ghosnconfirmed he fled to Lebanon, saying he wouldn't be "held hostage" by a "rigged" system, raising questions about how one of the world's most-recognised executives slipped out of Japan months before his trial.
Ghosn's abrupt departure marks the latest dramatic twist in a year-old saga that has shaken the global auto industry, jeopardised the alliance of Nissan Motor Co Ltd and top shareholder Renault SA and cast a harsh light on Japan's judicial system.

"I am now in Lebanon and will no longer be held hostage by a rigged Japanese justice system where guilt is presumed, discrimination is rampant, and basic human rights are denied," Ghosn, 65, said in a brief statement on Tuesday.
"I have not fled justice - I have escaped injustice and political persecution. I can now finally communicate freely with the media, and look forward to starting next week." Tokyo officials have previously said the system is not inhumane and that Ghosn has been treated like any other suspect.
It was unclear how Ghosn, who holds French, Brazilian and Lebanese citizenship, was able to orchestrate his departure from Japan, given that he had been under strict surveillance by authorities while out on bail and had surrendered his passports.
Ghosn arrived in Beirut on a private jet from Istanbul on Monday, people familiar with the matter told Reuters.
Immigration authorities had no record of Ghosn leaving the country, Japanese public broadcaster NHK said. A person resembling him entered Beirut international airport under a different name, NHK reported, citing an unidentified Lebanese security official.
'His lawyers were still in possession of his three passports, one of his lawyers, Junichiro Hironaka, told reporters.
Hironaka, in comments broadcast live on NHK, said the first he had heard of Ghosn's departure was on the news this morning and that he was surprised. He also said it was "inexcusable behaviour".
Japan has extradition treaties with only the United States and South Korea, according to the justice ministry, meaning it could be difficult to force Ghosn to return to stand trial.
While his arrest on financial misconduct charges last year ensured a dramatic fall from grace in Japan, he retains more popularity in Lebanon, where billboards saying "We are all Carlos Ghosn" were erected in his support and he was previously featured on a postage stamp.
Born in Brazil of Lebanese ancestry, Ghosn grew up in Beirut and has retained close ties to Lebanon.
A spokeswoman for the Lebanese embassy in Tokyo said "we did not receive any information" on the matter. Calls to the Brazilian embassy went unanswered. A French minister said she was "very surprised" by news of Ghosn's emergence in Lebanon.
Flight Risk
Ghosn was first arrested in Tokyo in November 2018, shortly after his private jet touched down at the airport. He faces four charges - which he denies - including hiding income and enriching himself through payments to dealerships in the Middle East.
Nissan sacked him as chairman saying internal investigations revealed misconduct ranging from understating his salary while he was its chief executive, and transferring $5 million of Nissan funds to an account in which he had an interest.
The case cast a harsh light on Japan's criminal justice system, which allows suspects to be detained for long periods and prohibits defence lawyers from being present during interrogations that can last eight hours a day.
Ghosn was initially released in March on a record $9 million bail only to be arrested on related charges weeks later and then released on bail again at the end of April.
His movement and communications have been monitored and restricted to prevent his fleeing the country and tampering with evidence, the Tokyo District court previously said.
The terms of his bail have also been striking by Western standards. He has been prevented from communicating with his wife, Carole, and had his use of the internet and other communications curtailed.
Carole is now with him in Lebanon at a house with armed guards outside, the New York Times reported, citing a person familiar with the matter.
House Arrest
Ghosn did not believe he would get a fair trial in Japan and was "tired of being an industrial political hostage", one person told The Wall Street Journal.
A person familiar with Nissan's thinking told Reuters: "I think he gave up fighting the prosecutors in court." The trial was widely expected to start in April. Ghosn's Japanese lawyers have fought, so far unsuccessfully, to get access to 6,000 pieces of evidence collected from Nissan, which they say is crucial to a fair trial.
Ghosn has said he is the victim of a boardroom coup, accusing former Nissan colleagues of "backstabbing" and describing them as selfish rivals bent on derailing closer ties between the Japanese automaker and its biggest shareholder Renault, of which Ghosn was also chairman.
His lawyers have asked the court to dismiss all charges, accusing prosecutors of colluding with government officials and Nissan executives to oust him to block any takeover by Renault.
Ghosn began his career in 1978 at tyre maker Michelin . In 1996, he moved to Renault where he oversaw a turnaround that won him the nickname "Le Cost Killer." After Renault sealed an alliance with Nissan in 1999, Ghosn used similar methods to revive the ailing brand, leading to business super-star status in Japan, blanket media coverage and even a manga comic book on his life.

Thursday, 29 November 2018

Ghosn signed documents to defer salary without telling shareholders: Report

Nissan's former chairman Carlos Ghosn signed secret documents instructing aides to defer part of his salary without disclosing this to shareholders, a source close to the issue claimed on Thursday.
Ghosn and close aide Greg Kelly were arrested last week for allegedly conspiring to under-report Ghosn's income by around $44 million -- about half of what should have been reported -- over five fiscal years until March 2015.
The 64-year-old tycoon denies the allegations and has not been able to defend himself publicly while he is in a Tokyo detention centre.
The source, who spoke on condition of anonymity, said the misreporting started in the fiscal year 2009/2010 when a new law came into force requiring any company executives earning 100 million yen ($885,000) or more to declare it.
"All of a sudden, he had to disclose his pay and when that happened, he started splitting it into two parts, one part that was disclosed and paid within that year, another part not disclosed, to be paid upon retirement in theory," said this source, who is familiar with the Nissan and prosecutors' probe.
Ghosn signed documents tasking a small number of his executive assistants -- excluding CEO Hiroto Saikawa, according to a local media report -- to arrange this division of his salary, added the source.
The businessman denies signing such documents, according to local media.
"Over the years since the law changed, the amount of undisclosed compensation grew and grew to the point where it was much larger than the disclosed amount of around one billion yen," the source claimed.
ALSO READ: Nissan-Renault alliance can survive Carlos Ghosn crisis: Mitsubishi Motors
Japanese law requires that the total amount -- including compensation upon retirement -- be disclosed annually, added the source.
But Nobuo Gohara, lawyer and former prosecutor, said "it is very doubtful if he was obliged to report it" if the charge Ghosn faces relates to postponement of his compensation until retirement.
The motive was reportedly to avoid shareholder and employee criticism over his high compensation.
According to the Yomiuri Shimbun daily, Kelly has told prosecutors he had "consulted with the Financial Services Agency about ways to fill in the financial report, and got a response there was no problem" in not reporting remuneration upon retirement.
The paper added that Ghosn denies any wrongdoing, telling prosecutors he consulted with Kelly "about dealing with the issue legally." Contacted by AFP, a spokesman for the FSA said the agency "cannot comment on the affairs of an individual company."
ALSO READ: Mitsubishi Motors follows Nissan, drives out Carlos Ghosn as chairman

Local media have also alleged in recent days that Nissan had provided Ghosn with luxury residences in four countries without any legitimate business reason, paying "huge sums" for residences in Rio de Janeiro, Beirut, Paris and Amsterdam.
The source confirmed part of this, saying that the residences in Rio de Janeiro and Lebanon "were paid for by the company but secretly."
The payments were made using a subsidiary based in the Netherlands and Kelly was responsible for setting up these arrangements, the source said.
Nissan's internal investigation report "does mention the fact that there were several apartments for which the company paid rents that were exclusively for M. Ghosn's use and did not come out of his housing allowance," added this source.
These expenses should have been disclosed as compensation but this was arranged without shareholders' approval and generally in secret, added the source.
ALSO READ: Arrested Nissan ex-chairman Ghosn denies alleged financial breach: Report
According to local media, Ghosn is also suspected of using Nissan's corporate money to pay a donation to his daughter's university and costs for a family trip.
And the Yomiuri Shimbun has said Ghosn paid some "advisory deal" money to his older sister -- $100,000 annually, for a fictive job.