Prosecutors file 2 new charges against ex-Nissan chief Ghosn

TOKYO: Prosecutors on Friday (Jan 11) filed two new sets of charges of financial misconduct against former Nissan chief Carlos Ghosn, Tokyo District Court said.

The auto tycoon was already facing charges for one allegation of under-reporting his pay, and the new charges accuse him of additional misreporting as well as “aggravated breach of trust” involving company funds.

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Lawyers for Ghosn said they would request bail for the ex-Nissan chief.

Motonari Otsuru confirmed that Ghosn had been indicted on the fresh allegations and said he would “shortly request his release on bail.”

Ghosn, who is reportedly suffering from a fever at his Tokyo detention centre, denies any wrongdoing, arguing in a dramatic court appearance on Tuesday that he is being “wrongly accused and unfairly detained”.

One of the most recognisable foreign executives in Japan, Ghosn was led into Tokyo District Court in handcuffs and with a rope around his waist and was noticeably thinner after more than 50 days of prison food.

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He spoke in a strong voice and passionately declared a “genuine love and appreciation for Nissan”, saying he had acted “honourably, legally and with the knowledge and approval of the appropriate executives inside the company”.

At the end of the nearly two-hour hearing, his lawyers applied for him to be freed but the court slapped this down, arguing he was a flight risk and could tamper with evidence if released.

An appeal to end his detention was also rejected.

Ghosn declared his love for Nissan at a dramatic court appearance. (Photo: AFP/Justin Sullivan)

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Ghosn has already been indicted once, over allegations he under-reported his salary over five fiscal years to the tune of ¥5 billion (US$46 million) in official documents to shareholders.

Ghosn forged an unlikely three-way alliance between Mitsubishi Motors, Renault and Nissan and the board of French automaker Renault – of which Ghosn remains CEO – said late Thursday an ongoing audit into executive pay had found no sign of fraud in the last two years.

READ: Renault audit finds no fraud yet as Ghosn learns fate

BAIL ‘VERY DIFFICULT’

But even Ghosn’s lead lawyer Motonari Otsuru had earlier said it would be “very difficult” to secure bail.

“In general in such cases in Japan, it is indeed the case that bail is not approved before the first trial does take place,” Otsuru told reporters after the hearing, adding that it could be six months before the case comes to trial.

The complexity of the case and the fact that all documents need to be translated into English and Japanese are likely to extend the time, added the lawyer.

The twists and turns of the Ghosn case have riveted Japan and the business world and more than 1,000 people queued up from the early hours to get one of only 14 seats in the public gallery on Tuesday.

Ghosn is facing a litany of accusations – all of which he denies. (Graphic: AFP/Gal Roma)

The case is also being played out in local media, with another string of allegations leaking out in the Japanese press on Friday.

The Yomiuri Shimbun said US$100 million was paid to sales agents in five Middle Eastern countries from Ghosn’s special “CEO reserve.”

Ghosn’s prolonged detention has also raised foreign awareness of the Japanese justice system that has come under fire internationally for allowing suspects to be detained almost indefinitely.

The jet-setting high-flyer who once sparked criticism for a lavish lifestyle was initially kept in a tiny cell and slept on Japanese-style tatami mats.

He complained about the rice-based diet at the detention centre and his family says he has lost up to 20kg.

He appeared gaunt with sunken cheeks in court although seemed in relatively good health despite an occasional cough.

However, according to local media, he was struck down by a high fever late Wednesday, with the prison doctor saying he was too unwell to be questioned or receive visits from his lawyer or embassy officials.

His wife Carole Ghosn said she had received no information about his health and “pleaded” with Japanese authorities for news.

“We are fearful and very worried his recovery will be complicated while he continues to endure such harsh conditions and unfair treatment,” she said in a statement.


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