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How Carlos Ghosn ought to release Nissan – News Economy: Business

Nissan Renault's absent boss, Carlos Ghosn, spent his first night in Tokyo on charges of tax evasion and financial crime. Meanwhile, it became known with which greed he used Nissan cash.

The 64-year-old bought at Nissans costs a private luxury apartment in Copacabana in Rio de Janeiro. Also in Paris, Amsterdam and Beirut acquired luxury properties for which Nissan paid at least 15.5 million euros. Ghosn's employer also undertook the renovation and maintenance of the apartments, although Nissan in Beirut has no known business interests. In addition, Ghosn estimates € 100,000 a year for private trips and meals with his family through expenses. In 2010, he raised the budget of Nissan's board from 15 million euros to 23 million euros, but just increased the salaries of his colleagues, preferring to crush the money. "An expensive cost cutter," she scoffed at Nikkei's paper. In Japan, Frank-Lebanese is so named because of his brutal reorganization of Nissan 18 years ago.

Architect of cheating with the apartments was American Greg Kelly, so far also Nissan's top manager, who was arrested as Ghosn on Monday night. According to unofficial reports of legal circles, both must refuse any guilt. The money for Ghosn's private property came from an investment fund created by Nissan in 2010 with an initial capital of six billion yen, about 46 million euros. The investment company is domiciled in the Netherlands. Officially, Nissan wanted to invest in startups, but there was no indication that this was happening. partner of the Alliance Renault does not participate in the fund. The investment company is domiciled in the Netherlands.

Going as a sign of apology: Nissan boss Hiroto Saikawa yesterday told Yokohama what he knew about the Ghosn affair at a press conference. Reuters

The French government has in the meantime asked Renault to be a temporary leadership. "Mr. Ghosn is not in a position to run the company today," said Economy and Finance Minister Bruno Le Maire. The French state owns 15% of Renault's shares.

The Japanese business world reacted shocked to the arrest. Surprisingly, with what annoyance Ghosn not only deceived the tax and economic authorities but also robbed Nissan. The stock of the car company had led to the closing of the stock market by more than five per cent.

Nissan Chief Executive Officer is a key witness

Unlike similar cases where Japanese companies had time to cover up the evidence, justice on Monday night managed to get everyone in surprise. It was attacked simultaneously in three parts, including Nissan headquarters in Yokohama and Haneda airport, where prosecutors and police were waiting at Ghosn Privatjet. When Gulfstream was parked, they went to the ship, where they were interviewed for about three hours and then left. This rapid, decisive action was made possible by the fact that the Japanese judicial authority introduced leniency in June. Consequently, the prosecutor can assure a grateful collaborator if he cooperates with the judicial investigation. In this case, a senior Nissan legal director, also a stranger, is the main witness.

Nissan, for its part, had created a mechanism for complainants internally, following scandals around inaccurate exhaust and gas consumption data. An employee used it in June to alert the four Nissan auditors about Ghosn's abuses. Tokyo is troubled because the auditors have not discovered fraud for years. On NHK TV, an expert said Ghosn kicked in internal critics. Nobody in the table dared to refute him.

Nissan should also be punished

After an internal investigation into allegations of complaints, Nissan intervened with the criminal authorities. The company is likely to have done with financial manipulation itself punished, especially with the wrong information about Ghosns' salary in the financial regulator. Since 2009, the salaries of top executives in Japan can be announced.

The witness pledged to cooperate with the indictment without restrictions. Thus, the prosecutor's office on Monday already had enough evidence to strike. This is only the second case in Japan where the leniency program applies.

The Nissan case again proves that Japan's economy is not moderating. Every few weeks, he is shaken by a new scandal. In the past two years, two seismic shock absorbers for multi-storey buildings, Nippon Steel, Mitsubishi Materials, Toshiba, Takata, Nissan, Mitsubishi and Subaru airbags have been ignored. Especially in quality control is always messy.

Violent and effective

But the scandal around Guos saw it here differently. The 64-year-old, who is said to have led the Nissan, Renault and Mitsubishi alliance as a dictator, was as tough as it was effective. A few years later, the Nissan group, which went bankrupt in 1999, was renovated and made it a pioneer, for example, with the Leaf electronic car. So far, he was considered the only alien who could dominate as a leader of a large Japanese group. Now it turned out to be a ruthless stranger who has abused the confidence of Japanese workers and shareholders.

A Chinese newspaper commented on the Nissan administration of Hiroto Saikawa, who runs the day-to-day operations for a year and a half, that Ghosn had wronged Ghosn. The Nissan administration hit Ghosn for ignoring the Japanese values, such as the 20,000 redundancies 18 years ago. Saikawa has rejected it decisively.

Japan's financial legislation provides for imprisonment of up to ten years for Ghosn violations and a maximum fine of 80,000 euros. The penalty for tax evasion and deep handles at Nissan has not yet been taken into account.
(Tamedia Editors)

Created: 20/11/2018, 13:58 clock

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