Chairman and Chief Executive Officer of the Renault-Nissan-Mitsubishi Alliance Carlos Ghosn, who was arrested on Monday on suspicion of financial misconduct, may have been embezzling part of remuneration allocated to Nissan's board of directors, local media reported on Tuesday citing sources in Tokyo's Public Prosecutors Office
TOKYO (Pakistan Point News / Sputnik - 20th November, 2018) Chairman and Chief Executive Officer of the Renault-Nissan-Mitsubishi Alliance Carlos Ghosn, who was arrested on Monday on suspicion of financial misconduct, may have been embezzling part of remuneration allocated to Nissan's board of directors, local media reported on Tuesday citing sources in Tokyo's Public Prosecutors Office.
On Monday, Nissan said in a press release that it had launched an internal investigation into Ghosn and Representative Director Greg Kelly a few months ago following a whistleblower report. According to the company, apart from understating his income, Ghosn also used the company's assets for personal purposes. The chairman could have concealed around 5 billion yens (around $44 million) worth of income between 2010 and 2015.
According to the NHK broadcaster, Nissan's shareholders' council has been allocating $27 million to the board of directors every year since 2010. However, the board members received only around $18 million, while the rest is reported to have been embezzled by Ghosn because he was the one to determine how much each executive should be paid.
Both Ghosn and Kelly may face up to 10 years in prison, a 10 million Yen fine or both of these penalties just for under-reporting the chairman's income.
