Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
    • Browse photos from the 2021 awards ceremony
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Battery testing center for large battery packs and more
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Automakers
April 05, 2019 09:26 AM

Why was Ghosn arrested again? What is different now?

NAOMI TAJITSU
Reuters
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    3GHOSN-MAIN.jpg
    REUTERS

    Sources told Reuters this week that Renault had uncovered suspect payments to a Renault-Nissan business partner in Oman while Carlos Ghosn was CEO.

    TOKYO -- Ousted Nissan boss Carlos Ghosn is back in the Tokyo detention center where he previously spent 108 days, after being released just last month on a $9 million bail. His lawyers are appealing the action. 

    Prosecutors arrested the once-feted executive on fresh charges of financial misconduct on Thursday.
    Ghosn has said he is innocent of all charges and the victim of a boardroom coup. His lawyers have accused Japanese prosecutors of trying to muzzle him.

    His former employers, Japan's Nissan and France's Renault , initially appeared to be at odds over his case when he was first arrested in November, but now seem to have closed ranks against him.

    What's new, what's different?

    Ghosn was arrested again on suspicion of funneling $5 million from payments made by a Nissan subsidiary to a third party for personal gain. An internal Nissan investigation has identified the party as a Nissan distributor in Oman.

    He is already fighting charges of under-reporting his Nissan salary for nearly a decade through 2018, and a charge of temporarily transferring personal financial losses to Nissan's books during the global financial crisis around 2008.

    The new allegation is potentially more serious, as it could show that he used company funds for his own purposes.

    Renault too is investigating payments it made under Ghosn's watch to the same company in Oman. The outcome of that probe could deepen the French automaker's exposure to the scandal, which so far has been largely focused on Nissan.

    How could it affect Ghosn's trial?

    Ghosn's lawyer has said the new charge will prolong his legal proceedings. It is, however, not clear how much more prison time he could face if charged and found guilty on the latest allegations.
    He already faces a maximum of 10 years and a 10 million yen ($89,517.50) fine if found guilty of the current charges.

    The trial is expected to start later this year.

    How can he be re-arrested when on bail?

    Arresting a suspect who has been released on bail is highly uncommon, and Japanese prosecutors have said they "humbly" recognized any international criticism over the latest arrest.

    But prosecutors also cited the concern that Ghosn could destroy evidence while out on bail as impetus for arrest.

    Legal experts say that re-arresting a suspect who has been released on bail suggests that prosecutors continue to look for new charges -- and may be concerned about the chances of winning a guilty verdict with the current charges.

    What's changed since the initial arrest?

    Since his November arrest on the tarmac of a Tokyo airport, Ghosn has faced a swell of allegations.

    Renault initially sought to avoid being drawn into the investigation initiated by Nissan -- which ousted Ghosn as chairman days after his arrest -- and for weeks avoided sharing the Japanese partner's findings with its own board. He was forced out as Renault chairman and CEO in January.

    Nissan has found that its own regional subsidiary made questionable payments of more than $30 million to the Omani distributor, while one source has told Reuters that the total sum paid by Renault is in the double-digit millions.

    Renault has also turned over evidence that the 50,000-euro ($56,145) rental of Ghosn's Chateau de Versailles wedding in 2016 had been improperly charged to the company.

    Nissan's investigation has also revealed the purchase of several properties around the world, including a Beirut house, by the company for Ghosn's use.

    A joint audit of the Renault-Nissan BV alliance management organization has tallied 1.2 million euros in Lebanese donations and other spending of questionable benefit to the car makers, among preliminary results presented to Renault directors.

    It has also been alleged that he used around $600,000 in Nissan funds to pay his children's university tuitions.

    Sources told Reuters this week that Renault had uncovered suspect payments to a Renault-Nissan business partner in Oman while Ghosn was CEO, which may be connected to the purchase of a luxury yacht worth millions of euros.

    What's next?

    Ghosn will remain in custody until April 14 after a court approved his detention. Prosecutors can apply for an additional 10 days detention, after which they must indict or release him.

    If indicted, Ghosn's legal team can apply, again, for bail.

    RECOMMENDED FOR YOU
    Stellantis to start conversion of Italian plant to gigafactory in 2024
    Recommended for You
    Stellantis Termoli web
    Stellantis to start conversion of Italian plant to gigafactory in 2024
    Renault Nissan
    Nissan shareholders reject proposal to allow disclosure of Renault agreement
    Cars charging China
    Beijing offers subsidies to spur demand for new-energy cars
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
        • Browse photos from the 2021 awards ceremony
    • More
      • Publishing Partners
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Battery testing center for large battery packs and more
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us