Ghosn Deputy Resigns From Nissan a Week After Going on Leave

Lloyd Doyle
January 14, 2019

Across the entire period, the two are accused of understating Ghosn's compensation by about $83 million.

The Renault board of directors held a special meeting Thursday night to discuss internal reviews of executive pay prompted by Ghosn's arrest.

As chairman of Nissan, Renault SA and Mitsubishi Motors Corp, the globe-trotting Ghosn had access to a string of residences around the world, including additional homes in Beirut and Rio de Janeiro. It was also discovered that a top executive at Renault close to Ghosn was also paid an unexplained sum from a three-way joint company of the automakers, "Renault-Nissan B.V". In a statement, Nissan stated that Munoz had "elected to resign" from the company, effective immediately.

The indictment brings the charges against Ghosn to three, including two counts of breaking the Financial Instruments and Exchange Act for suspected underreporting of his annual remuneration. He rebutted each allegation and asserted his innocence in a Tokyo court earlier this week, his first public appearance since his arrest.

According to Ghosn's lawyer, the high fever the chairman ran on the night of January 9 has fallen. Nissan Chief Executive Hiroto Saikawa has denounced Ghosn, accusing him of using the company's money and assets for personal gain.

Additionally, the lawyer of former Nissan representative director Greg Kelly, 62, who was indicted with Ghosn on the two charges of violating the Financial Instruments and Exchange Act, said that the former executive underwent the neck surgery that he required at a hospital in Ibaraki Prefecture after being released on bail on December 25 past year, and has since left the hospital. Nissan does not in any way tolerate such misconduct and calls for strict penalties. "In general in such cases in Japan, it is indeed the case that bail is not approved before the first trial does take place", he said, adding that it could be six months before the case comes before a judge.

December 25, 2018 - Kelly finally released after being granted bail. A prosecutor's office spokeswoman said charges against Ghosn carry a maximum prison sentence of 15 years. "We are fearful and very anxious his recovery will be complicated while he continues to endure such harsh conditions and unfair treatment", she said.

"I am pleading with the Japanese authorities to provide us with any information at all about my husband's health", Carole Ghosn said. Kelly has denied wrongdoing, as well.

December 10, 2018 - Ghosn and Kelly re-arrested following allegations of under-reporting their income for the subsequent three years.

Ghosn is further accused of temporarily transferring investment losses he faced during the global financial crisis of 2008 onto Nissan's books, which prosecutors say violates Japanese corporate law.

The company said in a statement that it took the latest charge seriously and was strengthening governance.

Other reports by Iphone Fresh

Discuss This Article