Japan: Former Nissan chairperson Carlos Ghosn arrested again on allegations of fraud
The move came a day after a Tokyo court rejected prosecutors’ request to extend his detention in another case.
Nissan Motor Company’s former chairperson Carlos Ghosn was arrested again on Friday on fresh allegations that he shifted $16.6 million, around Rs 116.10 crore, in personal investment losses to the company, Reuters reported. The re-arrest means he could be detained for at least 10 more days in jail.
Ghosn was arrested in Tokyo last month on charges of under-reporting his earnings. Ghosn – a French citizen of Lebanese descent who was born in Brazil – had played a major role in the formation of a strategic partnership between Nissan, its French partner Renault and Mitsubishi Motors.
The new arrest came a day after a court in Japan rejected prosecutors’ request to extend Ghosn’s detention. It also rejected a detention extension for the company’s former Representative Director Greg Kelly, who had also been arrested in November.
Ghosn is alleged to have shifted personal trades to Nissan in October 2008 in order to avoid paying 1.85 billion yen, or $16.6 million, in losses, according to the Tokyo prosecutor.
Hours earlier, Ghosn’s lawyer Motonari Otsuru had promised to restore his client’s reputation in court. “Things as they stand are absolutely unacceptable,” Otsuru said, on Ghosn’s behalf. “I want to have my position heard and restore my honour in court.”
On November 22, Nissan’s board of directors had dismissed him as chairperson. Japanese multinational automotive manufacturer Mitsubishi Motors had also dismissed Ghosn from the post, while Renault replaced Ghosn with a temporary deputy chief executive on the request of the French government. The French government holds 15% stake in Renault.