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February 07, 2019 06:23 AM

Renault to alert French prosecutors over Ghosn's wedding costs

Laurence Frost
Reuters
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    Renault

    Ghosn with wife Carole at the 2017 Cannes Film Festival.
     

    PARIS -- Renault has found evidence that it paid part of Carlos Ghosn's wedding costs and is preparing to turn the investigation over to prosecutors, two weeks after the French carmaker's scandal-hit former chairman and CEO was forced out.

    An internal probe established that a 2016 sponsorship deal with the Chateau de Versailles included a 50,000 euro ($57,000) personal benefit to Ghosn, the carmaker said, confirming an earlier report in Le Figaro.

    The carmaker replaced Ghosn on Jan. 24, more than two months after his arrest in Japan over allegations of financial misconduct uncovered by Renault's Japanese affiliate, Nissan , which he also chaired.

    Renault began its own examination of payments to Ghosn within days of his detention but had not flagged any irregularities until now.

    Renault has discovered that "Mr. Ghosn was accorded a personal benefit valued at 50,000 euros under the terms of a sponsorship contract with the Chateau de Versailles," the company said  in a statement on Thursday. "Renault has decided to bring these findings to the attention of the judicial authorities."

    The office of Ghosn's Japanese lawyer, Motonari Otsuru, did not immediately respond to a request for comment. Ghosn remains in detention in Tokyo with limited opportunity to respond publicly to allegations against him.

    Bloomberg

    Ghosn and his second wife, Carole, hosted their wedding reception at Versailles in 2016.

    Renault had agreed before the wedding to sponsor 2.3 million euros of Versailles renovations in return for a credit granting the carmaker services from the chateau worth 25 percent of that amount, or 575,000 euros, a person with knowledge of the matter told Reuters.

    The Oct. 8, 2016 wedding reception hosted by Ghosn and his second wife, Carole, attracted public attention for its opulence and Marie Antoinette-themed costumes.

    The Renault board's ethics committee was informed about the discovery on Wednesday, as reported by the newspaper, a source with knowledge of the matter told Reuters.

    Renault needs to show "total transparency" as it probes its business practices, including the sponsorship deal with the Chateau de Versailles, finance minister Bruno Le Maire said on Thursday.

    "The audit into Renault has started, it is starting to bring out results, I had personally demanded that audit," Le Maire added to reporters at a business event in Paris.

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