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Renault to alert prosecutors over ex-CEO Ghosn's wedding costs

Reuters  |  PARIS 

(Reuters) - has found evidence that it paid part of Carlos Ghosn's wedding costs and is preparing to turn the investigation over to prosecutors, two weeks after the French carmaker's was forced out.

An internal probe established that a 2016 sponsorship deal with the included a 50,000 euro ($57,000) personal benefit to Ghosn, the carmaker said on Thursday, confirming a report in

The carmaker replaced Ghosn on January 24, more than two months after his arrest in over allegations of financial misconduct uncovered by Renault's Japanese affiliate Nissan, which he also chaired.

began its own examination of payments to Ghosn within days of his detention but had not flagged any irregularities until now.

has discovered that "Mr Ghosn was accorded a personal benefit valued at 50,000 euros under the terms of a sponsorship contract with the Chateau de Versailles", the company said in a statement on Thursday.

"Renault has decided to bring these findings to the attention of the judicial authorities."

The office of Ghosn's Japanese did not immediately respond to a request for comment. Ghosn remains in detention in with limited opportunity to respond publicly to allegations against him.

Renault had agreed before the wedding to sponsor 2.3 million euros of Versailles renovations in return for a credit granting the from the chateau worth 25 percent of that amount, or 575,000 euros, a person with knowledge of the matter told

The rental fee was deducted from Renault's credit for use of the Grand Trianon at Versailles on October 8, 2016, when Ghosn and his second wife hosted their wedding reception at the 17th-century palace, the source said. The event had already attracted public attention for its opulence and costumes.

The Renault board was informed about the discovery on Wednesday, as reported by Le Figaro, the source added.

($1 = 0.8813 euros)

(Reporting by Laurence Frost; Editing by Richard Lough/Keith Weir)

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

First Published: Thu, February 07 2019. 20:48 IST
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