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Ghosn faces Mitsubishi sack as more allegations surface
TOKYO, Nov 26, 2018 (AFP) – Top executives from Mitsubishi Motors gather
on Monday to sack Carlos Ghosn as chairman over alleged financial misconduct
that the once-revered tycoon denies, as further allegations leaked out
against him.
At an emergency meeting in Tokyo, “it is to be proposed to the Board of
Directors to promptly remove Ghosn from his position as… chairman,” said
the Japanese firm, the third company in the powerful alliance also involving
Nissan and Renault.
Following his stunning arrest last Monday, the 64-year-old Brazil-born
Frenchman began his second week in a Japanese detention centre facing
allegations he under-reported his salary to the tune of $44 million over
several years.
He has not been formally charged and denies the allegations, telling
prosecutors he had no intention of under-declaring his compensation.
Fellow executive Greg Kelly, described as the mastermind behind the
alleged misconduct, has also reportedly denied the allegations, stressing
that his boss’s compensation was paid in an appropriate fashion.
The board of Nissan decided unanimously on Thursday to oust Ghosn as
chairman, a spectacular fall from grace for the dynamic businessman credited
with turning around the firm’s once-flagging fortunes by tying its fate to
Renault.
The executives made their decision “based on the copious amount and
compelling nature of the evidence of misconduct presented,” said a company
spokesman.
According to local media, Nissan formed a “secret” cell within the firm to
look into the alleged financial misdeed.
Executives accelerated the probe amid concerns Ghosn was working on a
fully fledged merger between Nissan and Renault, Kyodo News said without
naming its sources.
Renault is the dominant partner in the alliance, holding 43 percent of the
shares in Nissan, but the Japanese firm outsells its French counterpart —
sparking concern in Tokyo about the balance of power.
Together, the three-way alliance is the world’s top-selling car company,
with some 10.6 million vehicles rolling off the production line. It employs
around 450,000 people worldwide.
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JAPAN-FRANCE-NISSAN-MITSUBISHI-GHOSN 2 LAST TOKYO
Renault, which is 15-percent owned by the French state, has decided to
stick by Ghosn for now, appointing an interim boss while the current CEO and
chairman is “incapacitated.”
– ‘Conspiracy theory’ –
France’s economy minister Bruno Le Maire has urged the Japanese firm to
share “quickly” whatever evidence it has gathered and stressed Ghosn will
stay at the helm of Renault “until there are tangible charges.”
However, Le Maire also said “I do not believe in a conspiracy theory” amid
talk of a so-called “palace coup” within Nissan to prevent Ghosn merging the
firm with Renault.
Nissan’s CEO Hiroto Saikawa spoke to staff on Monday to address the issue.
Saikawa, who rose through the Nissan ranks under Ghosn’s wing, has already
spoken of his “great resentment and dismay” at the allegations.
Meanwhile, further claims continued to leak out in the Japanese media of
Ghosn’s alleged misconduct.
Officially, prosecutors are looking into allegations that he understated
his income by around five billion yen ($44 million) between June 2011 and
June 2015.
But the Asahi Shimbun said authorities are planning to re-arrest him on
charges of understating his income by a further three billion yen — for a
total of $71 million — for the following three fiscal years.
Under Japanese law, suspects can face additional arrest warrants, which
can result in heavier penalties. The current allegations could see Ghosn
facing 10 years behind bars and/or a 10-million-yen fine.
Separately, Kyodo has reported that Nissan paid $100,000 annually since
2002 to Ghosn’s sister for a fictive “advisory” role.
And the Mainichi Shimbun reported on Monday that Ghosn used Nissan’s
corporate money to pay a donation to his daughter’s university and also
charged family trips to the company.
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