Ex-Nissan chief Ghosn re-arrested in Japan over new claims


FE Team | Published: April 04, 2019 11:12:37 | Updated: April 05, 2019 17:47:20


Former Nissan chief Carlos Ghosn - Reuters photo

Former Nissan chief Carlos Ghosn has been re-arrested in Tokyo while out on bail pending trial over claims of financial misconduct.

Prosecutors said the 65-year-old had been detained over suspicions he caused Nissan $5m (£3.8m) in losses, according to reports.

In a statement, Mr Ghosn said his re-arrest was "outrageous and arbitrary".

The auto boss, who denies any wrongdoing, was recently released on bail after 108 days in custody.

Tokyo prosecutors entered Mr Ghosn's residence before 06:00 local time on Thursday (21:00 GMT Wednesday) and took him to their office on suspicion he had misappropriated Nissan funds for personal use, Japanese broadcaster NHK reported.

NHK said it was unusual for someone released on bail in Japan to be re-arrested.

Prosecutors said Mr Ghosn's latest arrest relates to transfers of Nissan funds totalling $15m between 2015 and 2018, reports said.

They suspect $5m of that amount was used by Mr Ghosn for personal expenditure.

Local media had previously said that authorities had been building a new case against him involving payments to a dealership in Oman.

"I am innocent of the groundless charges and accusations against me," Mr Ghosn said in a statement released by his representatives.

He said the arrest is "part of another attempt by some individuals at Nissan to silence me by misleading the prosecutors".

The move is the latest twist in a case that has attracted global attention, says a BBC report.

Mr Ghosn was the architect of the alliance between Nissan and French carmaker Renault, and brought Mitsubishi on board in 2016.

The 65-year-old was credited with turning around the fortunes of Nissan and Renault over several years.

Misconduct allegations

Mr Ghosn was first arrested in November for understating his pay. He was re-arrested twice in December and faces three charges.

He was first charged with underreporting his pay package for the five years to 2015.

In January, a fresh charge claimed he understated his compensation for another three years and he was also indicted on a new, more serious charge of breach of trust.

Mr Ghosn denies any wrongdoing. He was released on $9m (£6.8m) bail in March.

The auto executive also said on Wednesday on a newly created Twitter account that he was planning a press conference on 11 April "to tell the truth about what's happening".

Pressure from Renault

The latest arrest comes after Renault publicly criticised its former star executive for the first time, accusing him of "questionable and concealed practices".

Mr Ghosn only resigned from the French carmaker in January, while Nissan and Mitsubishi removed him as chairman shortly after his arrest.

Renault had initially questioned Nissan's allegations, but carried out its own internal inquiry.

But on Wednesday, it piled pressure on Mr Ghosn when it accused him of "violations of the group's ethical principles".

The carmaker said it would stop Mr Ghosn's pension, thought to be worth €765,000 a year, adding that it reserved the right to bring action against him in the courts.

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