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News The Carlos Ghosn saga

thomas

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Another high and mighty has fallen: Carlos Ghosn, chairman and CEO of France-based Renault, chairman and former CEO of Japan-based Nissan, and chairman of Mitsubishi Motors, has been arrested in Tokyo for understating his income on financial statements. Allegedly, he failed to report 5 billion JPY over five years between 2011 and 2015. The case was brought to the attention of law enforcement authorities by whistleblowers.

Nissan Renault chief Carlos Ghosn faces arrest in Japan



Nissan Renault chief Carlos Ghosn faces arrest in Japan | Business | The Guardian

Nissan Chairman Carlos Ghosn arrested for allegedly not reporting full salary

Nissan Chairman Carlos Ghosn arrested for allegedly not reporting full salary | The Japan Times

Nissan's official statement:

Regarding serious misconduct by Nissan Chairman and one representative director

Regarding serious misconduct by Nissan Chairman and one representative director - Global Newsroom


Nissan's CEO Hiroto Saikawa at a live news conference after Ghosn and Kelly had been arrested.
 
I think he realizes some jail time and then being deported. Did it say anywhere that they searched his residence?
When people make this type of money, they simply don't have time to spend it wisely and with that comes out the stupidity of greed.
Hope they throw his *** in the slinger.
 
There is definitely more to this story than just undeclared income.
  • How is it possible that the Nissan execs didn't know about Ghosn's underreporting?
  • Why did they wait years to report those cases of alleged misconduct and misappropriation?
  • And how convenient to have a mysterious whistleblower whose identity and ulterior motives will never be known?
Anyhow, we can expect the proposed Renault-Nissan merger to be off the table and Ghosn to be the scapegoat for other scandals at Nissan.
 
That is probably the reason... the forces against the merger. Although they are in a close alliance the companies still source independently and can't come to agreement in the areas where it would make sense to consolidate their platforms.
 
Either way he's not allowed to see his family. I like how they say detention center instead of "jail".
3 meals a days also. A shower 2 times a week. I wonder if he'll have a nervous breakdown.
 
musicisgood said:
Either way he's not allowed to see his family. I like how they say detention center instead of "jail".
3 meals a day also. A shower 2 times a week. I wonder if he'll have a nervous breakdown.
Click to expand...

He's a Lebanese. They're tough as nails. He'll survive a few days in the detention centre. :emoji_wink:

Meanwhile, here's an interesting piece by the WSJ:

Opinion | The Ghosn Inquisition

The troubling arrest and firing of Nissan’s long-time executive.
www.wsj.com



 
My wife told me when I first arrived in Japan, obey me and obey the Japanese law. I have bent some rules since then, but I do know not to cheat the local govt. out of their taxes.
I played by the rules all these years and yes, I can sleep peacefully. Taxes in this country are high if you make good money. I know that from my living and working here. But at retirement age, either you keep a damn good income coming in or live at the poverty line. For those of you reading this, you'll learn what I'm saying when you get 65 years of age.
 
It's January 8, and Mr Ghosn has had his first day in court after having been "re-arrested" on new charges on Dec 10 and 21. He appeared in the dock in slippers, handcuffed and with a rope tied around his waist, and categorically denied all allegations against him. It's interesting to note a certain polarisation in the way Japanese and foreign media report on the issue: Japanese news outlets focus on the various charges against Mr Ghosn, while foreign media criticise Japanese remand procedures as well as the Japanese law enforcement system per se.

Mr Ghosn's full statement was released here.

'I am innocent' and 'unfairly detained': Carlos Ghosn in first court appearance | The Japan Times

Nissan's Saudi partner details lobbying work, echoing Carlos Ghosn's testimony | The Japan Times

Ghosn's lawyer says bail very difficult before trial - Japan Today

An interesting snippet on Wiki that might shed more light on Saikawa's likely motives:

Leaks to the media said that Ghosn had planned to call a vote to fire Nissan CEO Saikawa and reinstate Kelly (who had semi-retired to the U.S. in 2015) to active service at the scheduled board meeting.

Source - Original source
Click to expand...
 
It's interesting to note a certain polarisation in the way Japanese and foreign media report on the issue: Japanese news outlets focus on the various charges against Mr Ghosn, while foreign media criticise Japanese remand procedures as well as the Japanese law enforcement system per se.

Interesting but hardly surprising. The Japanese law enforcement system with its rearrests, lack of rights for suspects and reliance on confessions is an outlier among developed democratic countries, and the Japanese media basically act as cheerleaders for Japan and have never been good at criticising their own country. As far as they are concerned, as soon as you are arrested you become a yougisha, end of story.
 

I guess it would be overly optimistic to expect any changes in the antiquated Japanese law of criminal procedure. At least, foreign pressure seems to have improved Mr Ghosn's conditions of detention. To my greatest surprise, even my wife found his treatment outrageous.

Ghosn case rattles Japan's expat business community

Carlos Ghosn's prolonged detention under what critics see as Japan's opaque and draconian legal system has alarmed foreign executives and sparked questions over the country's ability to attract overseas talent. Some in the expat business community believe the French-Brazilian-Lebanese tycoon...
news.yahoo.com
 
I think he got what he deserved. He shouldn't have hid money from the tax man as I understand it. It's no different for me either. If I didn't file correct tax information, I too can be jailed and then deported. Just the way it is in Japan.
Obey the laws of the country. Its cheaper that way and happier on the long run.
 
Whether he's hidden income or not and thereby violated laws will be for a court of law to decide. If he has broken financial regulations (so far he's been charged with falsifying statements on FSA records, not tax evasion) he should be held accountable by all means. However, what everyone deserves too is recourse to a fair trial, and it appears that

a) in this case double standards are being applied and

b) that the definition of "fair trial" in Japan differs from that in most other democratic nations.

To me, this looks more and more like a personal vendetta. There will be no winners.
 

I don't think that anyone can disagree with you on this, but the very selective application of laws in Japan may be encouraging people at the top (and lower down) to flout them. There have been so many corporate scandals since I've come to Japan, and the people with overall responsibility for the 2005 train crash in Osaka killing over 100, the Fukushima disaster, the bullying and overworking of a 24 year old woman to her death at Dentsu in 2015 (the company were fined just 50 man!) and many others remain in their jobs or retired on generous pensions having received little more than a slap on the wrists. As Thomas says, there is much more to this than simply law breaking.
 
Sorry to stay, but this dude "does not have" the political strength behind his country to help him out. "That my good friends here on the forum is the truth".
This type of situation is down to a political move, and there is none at the movement. At least not continuing .
Wife says "it is quick sand that awaits him in prison, nothing that will sink him, but he can't move "win" this case.
 
musicisgood said:
Wife says "it is quick sand that awaits him in prison, nothing that will sink him, but he can't move "win" this case.
Click to expand...
He can't win the case but he may be able to get it dropped. Did you read the article?
Ultimately I think it depends on what real evidence they have as well as what is found out about Saikawa and his cohorts.
 
France has opened an investigation into the Japan head of the Olympics Committee. Some say this is retaliation for Carlos Ghosn's arrest. (However the Japanese Olympics Committee head was not detained, and indeed has now returned to Japan). Meanwhile, I understand Carlos Ghosn was denied bail/release yesterday, and remains in prison. There is political leverage at work, but Japan appears to want to make a very public demonstration, and world opinion be damned. If Ghosn is guilty he should get what is coming to him. As he has yet to go to trial and to have the evidence against him judged, it does seem unusual that he should sit in a Japanese jail (or detention center, or whatever it is) for months, while other financial and tax criminals in Japan get much more lenient treatment. The case of Livedoor's Horie Takafumi was not exactly analogous, since Horie defrauded investors. I suppose one could make a philosophical claim that Ghosn also defrauded investors, but stock price manipulation and financial treatment of the compensation of the CEO are different levels of fraud, with the latter having an arguably more negligible impact on stockholders.
The treatment of Ghosn, the investigation of the JOC official, together with the politically-motivated arrests of the Huawei executive in Canada, and the retaliatory arrests of Canadian businessmen in China, all makes me feel there is a very foul wind blowing around the world right now.
 
mdchachi said:
He can't win the case but he may be able to get it dropped. Did you read the article?
Ultimately I think it depends on what real evidence they have as well as what is found out about Saikawa and his cohorts.
Click to expand...


Yes, I did read the article. But my thoughts were that he made a high profile mistake and currently (from what I've heard) does not have the political clout to wiggle himself out of this jam. If Abe steps in, then yes, he'll walk, pay what's agreed upon, and depart Japan for good.
Personally, I think it's now up to Abe not to let this continue to ride on. It is true, the police are out to break him (spirit) and to confess, at least that is my thoughts on this. 20 pounds of loss weight , now that's some weight loss. Wonder if they serve French bread in the detention center or jail, wherever he is .
 


I wonder if it has to do with all these trade deals going on around the world. One thing is for sure, if I was an active businessman , I would not be doing business in China these days. There's a saying "you just don't know what the Chinese are thinking". I think this can be a case with the Japanese police at the moment with the Ghosn situation too.
 
For sure it has to do with trade deals going south and old animosities coming back to the surface.
On the other hand, I'm just now reading some of the allegations against Ghosn. I have to admit they sound bad: Nissan paying several hundreds of thousands of dollars to Ghosn's sister's consulting company, Ghosn using over $7m (of the company's money??) to refurbish his house in Lebanon, Ghosn using Nissan's money to pay yacht club fees in Brazil. These are crazy. If they are true and happened without company oversight, he deserves to be investigated. If the company had a lapse of sanity and decided these expenses were worth it, then we can blame poor company governance in addition to poor management by Ghosn, and the whole board and compensation committee needs fixing. (But these are civil offenses, not criminal ones). .
 
So now he has a new attorney. Any reason you think he'll be treated differently?
I don't think so, but the "razor" doesn't come cheap. Maybe he'll have to start selling some of his worldwide properties.
Personally, it is a lost cause without political connections now at this stage.
That lady with Toyota got out of jail only because of "political connections" and that was for importing drugs.
I hope you folks see my point here.
 
Renault has thrown him under the bus. There is a steady leak of new allegations regarding financial impropriety. All bush-league stuff. Using company funds for personal enrichment of a petty sort (well, petty for a rich guy). It's stuff that will win him no friends, get him indicted, and he will probably get off with a multi-year suspended sentence and an ignominious deportation.

Innocent until proven guilty. But... it looks like he's toast.
 
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