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Nissan chief Ghosn arrested over financial misconduct: reports

AFP  |  Tokyo 

was reportedly under arrest in on Monday, as his firm accused him of "significant acts of misconduct" and said it would seek to oust him.

Japan's and other said Ghosn had been arrested after being questioned by Japanese prosecutors for various improprieties including underreporting his income.

"The District Public Prosecutor's Office arrested Ghosn on suspicion of violation of the Financial Instruments and Exchange Act," said.

In a statement, said it had been conducting a probe into Ghosn for several months after receiving a whistleblower report and had uncovered misconduct going back several years.

The prosecutor's office had no comment on the reports about Ghosn, who also heads an alliance of Renault, Nissan and

Nissan said it had launched an investigation into both Ghosn and several months ago.

"The investigation showed that over many years both Ghosn and Kelly have been reporting compensation amounts in the securities report that were less than the actual amount, in order to reduce the disclosed amount of Carlos Ghosn's compensation," the statement said. "Also, in regards to Ghosn, numerous other significant acts of misconduct have been uncovered, such as personal use of company assets, and Kelly's deep involvement has also been confirmed."

The company said it had provided information to Japanese prosecutors and would propose to the board of directors that it "promptly remove Ghosn from his positions" along with Kelly.

The astonishing first emerged Monday evening, when the newspaper reported Ghosn was being questioned by prosecutors and was likely to face arrest.

reported that Tokyo prosecutors were raiding in the city of

shares plunged 12 percent in late morning trading in on the shock news, which emerged after the end of the Tokyo session. "If he is arrested, it's going to rock the Renault-Nissan-alliance as he is the keystone of the alliance," said Satoru Takada, an at TIW, a Tokyo-based research and consulting firm.

"He is the man of charisma for the alliance. It is likely to have a negative impact on its brand image," he told AFP.

Nicknamed Le Cost Killer, Brazil-born Ghosn, 64, is known for overhauling and Nissan starting in the nineties. came to the rescue of the then-ailing Japanese automaker in 1999 and parachuted in Ghosn, who set about slashing costs and jobs in a huge corporate overhaul.

In 2016, Ghosn also took charge at troubled after Nissan threw it a lifeline, buying a one-third stake for about $2.2 billion as it wrestled with a mileage-cheating scandal that hammered sales.

Ghosn has a high profile in and is known as a major advocate of the country's auto sector. He has not yet commented on the allegations.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, November 19 2018. 17:05 IST
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