Tokyo Court To Keep Nissan's Carlos Ghosn Detained For 10 Days
- by Claude Bryan
- in Markets
- — Nov 22, 2018
Mitsubishi CEO Osamu Masuko said Tuesday that he did not think "there is anyone else on Earth like Ghosn who could run Renault, Nissan and Mitsubishi".
Ghosn and Kelly, who has also been arrested, have not commented on the accusations so far and Reuters has not been able to reach them.
The Nissan board is expected to remove Ghosn as chairman Thursday.
Prosecutors on Wednesday (Nov 21) received court approval to hold Mr Ghosn for another 10 days, the Kyodo newswire reported. It is believed that the instruction was given to executive officers in charge of compiling securities reports via his closest aide, Kelly.
Ghosn's arrest followed a months-long internal investigation at Nissan, of which Ghosn was apparently unaware until Monday. The Board was chaired by the lead independent director Philippe Lagayette after the opening of judicial proceedings against Mr. Carlos Ghosn in Japan.
Ghosn has worked for Renault since 1996, and has been its chairman and CEO since 2005, was following a board meeting tonight (Tuesday), a day after the misconduct charges came to light.
The biggest questions surround Ghosn's alleged misuse of company money to purchase millions of dollars in properties around the globe with seemingly no ties to official business.
Ghosn's stated remuneration in the reports over five years until fiscal 2014 was around ¥1 billion annually, ranging from ¥982 million to ¥1.035 billion.
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Bail cannot be granted until prosecutors decide whether to proceed with an indictment, a process that could take weeks, and Mr Ghosn will not necessarily be joined by an attorney when he is questioned during that time.
Paris and Tokyo have been scrambling to contain the fallout from the arrest, with finance ministers of both countries declaring strong support for "one of the greatest symbols of Franco-Japanese industrial cooperation".
During this period, the Board will "meet regularly" under Lafayette's presidency to "ensure" the continuity of the alliance with Nissan and Mitsubishi, something that had been called into questioned by the outbreak of the scandal.
Ghosn was once the darling of corporate and popular Japan - even having a manga comic inspired by him.
He had a reputation as a workaholic and won the nickname "Le Cost Killer" in France for his slash-and-burn approach to corporate restructuring.
Through complex cross-shareholding arrangements, Renault owns 43 percent in Nissan, including voting rights, while Nissan owns a 15 percent non-voting stake in Renault.
The Brazilian-born businessman has been credited with turning around both Nissan and Renault before becoming the linchpin of the alliance the companies later formed.
"He trampled on Japanese cultural norms with his flamboyant glory-hogging ways, and his massive compensation incited jealousies and invited retaliation", he said.
