Abu Dhabi, UAESaturday 24 August 2019

Carlos Ghosn faces new allegations of improperly receiving $9m from Nissan-Mitsubishi joint venture

Allegation will add pressure on French car maker Renault to cut ties with Mr Ghosn

Carlos Ghosn has been indicted in Japan on charges of under-reporting his salary for eight years. Reuters
Carlos Ghosn has been indicted in Japan on charges of under-reporting his salary for eight years. Reuters

Arrested auto executive Carlos Ghosn improperly received €7.8 million ($9m) in compensation from a joint venture between Nissan and Mitsubishi, the companies claimed on Friday.

A joint investigation found that Mr Ghosn, ousted as chairman from both automakers, was compensated by the Netherlands-based joint venture without any discussion with two other board members - Hiroto Saikawa, chief executive of Nissan, and Osamu Masuko, chief executive of Mitsubishi.

Nissan holds a controlling stake in Mitsubishi Motors.

Mr Ghosn has denied the charges against him. His lawyer, Motonari Otsuru, could not immediately be reached for comment on Friday.

Mr Ghosn, arrested and detained in Tokyo since November 19, has been indicted in Japan on charges of under-reporting his salary for eight years leading up to March 2018, and temporarily transferring personal investment losses to Nissan during the global financial crisis.

It was reported earlier this week about the alleged improper compensation to Mr Ghosn by the joint venture and that Nissan was considering filing for damages.

Nissan said on Friday that it would consider ways to recover the full amount from Mr Ghosn, and Mitsubishi said it would consider ways to hold him responsible.

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Read more:

France rounds on Ghosn as government calls for his ousting from Renault

Wife of Carlos Ghosn writes letter to draw attention to his 'harsh' treatment

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The latest allegations are likely to add pressure on the Japanese automakers' partner Renault to cut ties with Mr Ghosn. Unlike Mitsubishi and Nissan, Renault has kept Ghosn as chief executive and chairman, but its biggest shareholder, the French government, is keen to replace him.

The French automaker holds around 43 per cent of Nissan, the biggest partner in the alliance by sales. Mitsubishi became the smallest member of the three-way auto-making alliance when Nissan took a 34 per cent stake in the company in 2016.

Updated: January 20, 2019 03:32 PM

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