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JAPAN-AUTOMOBILE-CRIME
Japan to indict Nissan as well as Ghosn: report
TOKYO, Dec 7, 2018 (BSS/AFP) – Tokyo prosecutors have decided to indict
Nissan as well as its former chairman Carlos Ghosn and another executive as
early as next week over alleged financial misconduct, a report said Friday.
The report comes amid speculation that Ghosn and his right-hand man Greg
Kelly will face new allegations related to under-reporting of the auto
titan’s compensation.
The pair were arrested on November 19 on suspicion of conspiring to
understate Ghosn’s pay by some five billion yen ($44 million) in official
filings during the five years up to March 2015.
The Nikkei business daily reported Friday that Ghosn and Kelly would likely
be indicted on those allegations as soon as Monday, when their current
detention period expires.
The daily said prosecutors had decided that Nissan was also responsible for
the alleged financial wrong-doing and would bring charges against the firm.
Under Japanese law, prosecutors can hold suspects for up to 22 days while
investigating a single allegation.
But they can seek an additional 22 days of detention for each new
accusation against a suspect.
Reports suggest Ghosn and Kelly could face a new accusation related to
under-reporting of the former chairman’s compensation by another four billion
yen ($35.5 billion) over the last three years.
The new accusation is also expected to be announced next week.
Japanese prosecutors said they could not comment on the report and Nissan
said only that it was cooperating with the prosecutor’s office.
“The company has been… fully cooperating with its investigation. We will
continue to do so,” spokesman Nicholas Maxfield told AFP.
Neither Ghosn nor Kelly have yet been officially charged, and they deny any
wrongdoing.
Ghosn’s November 19 arrest in Tokyo shook the business world, where he has
long been a highly regarded top executive.
In Japan, Ghosn was celebrated as a charismatic business leader who saved
Nissan from the brink of failure and rebuilt it as a money-making subsidiary
of Renault.
But since his shock arrest, he has been removed from the boards of Nissan
and Mitsubishi Motors.
Nissan has begun the process of choosing Ghosn’s successor, with the final
decision expected on December 17.
BSS/AFP/MRI/0812 hrs