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Carlos Ghosn, Nissan Motor to be indicted Monday: Nikkei

Reuters  |  TOKYO 

(Reuters) - prosecutors plan to indict former Motor Co Ltd on Monday for financial misconduct, daily reported, ratcheting up their case against the auto tycoon.

Prosecutors also plan to indict on the same day former as well as the automaker itself, said on Friday, citing unidentified sources.

The Nov. 19 arrest of Ghosn and Kelly shook the foundations of the Renault-alliance and stunned the auto industry, where Ghosn is renowned for turning around the French and Japanese carmakers. Ghosn remains and chief executive of Renault SA.

Ghosn and Kelly's detention period runs until Monday, when prosecutors must decide to indict, release, or rearrest them on new claims.

said the two former executives and would likely be indicted over the alleged underreporting of salaries in five annual reports through the year that ended in March 2015.

Ghosn and Kelly are also likely to be rearrested on suspicion of making misstatements in reports for the subsequent three years, the newspaper reported.

The Nikkei said making false statements in an annual report was a crime for which not just the individuals involved but also companies can be held accountable, and prosecutors wanted to charge Nissan for not preventing the alleged crime.

Representatives for the District Public Prosecutor's Office and Nissan declined to comment.

Ghosn was arrested for allegedly conspiring to understate his income by about half of the actual 10 billion yen ($88.66 million) over five years from 2010. Kelly was accused of assisting.

Ghosn and Kelly have not made any statement through their lawyers, but Japanese media reported that they have denied the allegations.

($1 = 112.7900 yen)

(Reporting by Chris Gallagher; Additional reporting by Kaori Kaneko and Kiyoshi Takenaka; Editing by and Christopher Cushing)

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

First Published: Fri, December 07 2018. 09:48 IST