See More on Facebook

Curiosity

Prosecutors: Nissan’s Ghosn understated pay by ¥5 bil.

Ghosn is currently under arrest for financial discrepancy and under-reporting pay.


Written by

Updated: November 21, 2018

Nissan Motor Co. Chairman Carlos Ghosn, arrested Monday on suspicion of falsifying the company’s securities reports, allegedly understated his remuneration by about ¥5 billion (about $44.4 million) over a five-year period.

The special investigation squad of the Tokyo District Public Prosecutors Office on Monday arrested Ghosn and Greg Kelly, representative director of the Yokohama-headquartered automaker, on suspicion of violating the Financial Instruments and Exchange Law. The squad also searched the company headquarters.

Later in the evening, the automaker said it plans to dismiss Ghosn and Kelly.

According to an announcement by the special investigation squad, Ghosn received remuneration of about ¥9.998 billion over five years from the business year ending in March 2011. However, authorities allege that Ghosn colluded with Kelly to submit securities reports to the Kanto Local Finance Bureau falsely stating that his remuneration over the period was about ¥4.987 billion.

From the business year ending in March 2010, executives of a listed company who receive annual remuneration of ¥100 million or more have been obliged to state their name, the amount of the remuneration and other data in securities reports.

Ghosn also is suspected of having had the company use part of the about ¥5 billion compensation understated in the securities reports to purchase property overseas.

Nissan announced Monday that it had uncovered “numerous other significant acts of misconduct” by Ghosn, such as personal use of the company’s investment funds and expenses.

According to Nissan and sources relevant to the case, the company learned about the misconduct by Ghosn and Kelly from a whistle-blower several months ago. Through an in-house investigation, the company discovered that several operating officers, among others, were allegedly involved in the misstatement of securities reports under Kelly’s direction.

Kelly, who is one of Nissan’s three representative board members, had reportedly ordered them to conceal portions of Ghosn’s remunerations.

“[Kelly] lives in the United States and rarely comes to Japan. It’s not really known what he does in the company,” a Nissan source said. In board meetings, Kelly attended via video and simply gave opinions.

As Ghosn’s closest aide, however, it is believed Kelly had a big influence on decisions related to executive personnel affairs and compensation. “Operating in the shadows of Ghosn’s leadership, he [Kelly] had control of the company,” President and Chief Executive Officer Hiroto Saikawa said at a press conference on Monday.

After receiving information from Nissan, the special investigation squad began an investigation and made plea bargaining deals with the executives suspected of being involved in the falsification under Kelly’s instruction. The deal will help the executives mitigate their criminal punishment in return for cooperating with the investigation by giving evidence of Ghosn’s and Kelly’s misconducts.

The punishment for falsifying a securities report is a prison sentence of up to 10 years, or a fine of up to ¥10 million, or both. The company could also face a fine of up to ¥700 million if dual liability is applied.

Ghosn’s annual executive compensation shown on Nissan’s securities reports stood around between ¥982 million and ¥1.04 billion from the business years ending March 2011 to March 2015. The figure exceeded ¥1 billion in the business years to March 2016 and March 2017, while the figure for the year to March 2018 decreased by 33 percent from the previous year to ¥735 million.Speech

 



Enjoyed this story? Share it.


The Japan News
About the Author: The Japan News is published by The Yomiuri Shimbun, which boasts the largest circulation in the world.

Eastern Briefings

All you need to know about Asia


Our Eastern Briefings Newsletter presents curated stories from 22 Asian newspapers from South, Southeast and Northeast Asia.

Sign up and stay updated with the latest news.



By providing us with your email address, you agree to our Privacy Policy and Terms of Service.

View Today's Newsletter Here

Curiosity

Muscular solid-fuel rocket to fly soon

The rocket will be used for space exploration. China Aerospace Science and Industry Corp will soon launch the nation’s biggest solid-propellant carrier rocket and is working on new models that will be even larger and stronger, a project insider said. Hu Shengyun, a senior rocket designer at the CASIC Fourth Academy in Wuhan, Hubei province, which develops and builds the Kuaizhou series, said the maiden mission of the Kuaizhou 11 will take place soon at the Jiuquan Satellite Launch Center in northwestern China. He spoke to China Daily on the sidelines of the ongoing second session of the 13th National People’s Congress in Beijing as he attends the national legislature’s annual meeting. The researcher said the Kuaizhou 11 is China’s largest and most powerful solid-propellant carrier rocket, with a length of 25 meters, a diameter of 2.2 meters, and a liftoff weight of 78 metr


By China Daily
March 14, 2019

Curiosity

Cloud Seeding: Why make it rain?

The South Korean government carried out its first artificial rain experiment of the year in late January. The trial was conducted by the Korea Meteorological Administration and the Ministry of Environment over the Yellow Sea. The results of this attempt were underwhelming, producing little more than a weak mist. Although the experiment has been reported as a “failure” the purpose of these operations isn’t necessarily to produce rain every time, but rather to acquire data, fine-tune the process and find out if artificial rain can even be reliably stimulated. The KMA carried out 12 experiments in 2018 and has 14 more trials planned for 2019. The data gathered by these trials will be used alongside information obtained from the 54 South Korean artificial rain experiments that h


By Quinn Libson
March 1, 2019

Curiosity

Hanoi gridlocked for Trump-Kim summit

The city is pulling out all the stops for the international summit. Hanoi traffic is manic enough on normal days, but it has got much worse this week as the city pulls out all stops for the second summit between United States President Donald Trump and North Korea leader Kim Jong Un. Downtown was gridlocked for much of Tuesday (Feb 26), as roads were blocked to make way for the arrivals of the two men, sending legions of scooters – the favoured mode of travelling for 7.5 million Hanoians – fleeing onto pavements to cut the jam. For this one week at least, life in Vietnam’s capital city will be far from normal. Cafes have been told to clear their tables and chairs from pavements; some have been told to shut. Tanks have rolled in, much to the amusement of both tourists and locals, who cannot resist posing next to the armoured vehicles. Yet, hotel receptionist Tam Mai, 30,


By The Straits Times
February 27, 2019

Curiosity

Japanese retailers embark on sales drive marking end of Heisei reign

The Japanese Emperor Akihito is due to abdicate later this year. Three months remain in the Heisei era. Unlike the previous era change brought about by the death of Emperor Showa, the upcoming transition is characterized by a festive mood. Retailers are engaging in a marketing war as they entice consumers with “Last Heisei” sales, while bridal companies are preparing for a wave of “last-ditch marriages” in which couples wed before the end of the era. The Loft, a leading variety store in Shibuya, Tokyo, put up an advertisement with the message, “We’re daring to ‘bring back’ giri-choko for the last Valentine’s Day of the Heisei era.” The campaign seeks to upend the gradual decline of giri-choko, chocolates that women give to their male colleagues or friends only out of a sense of obligation.


By The Japan News
February 3, 2019

Curiosity

Asia’s largest LGBTQ exhibition to open in Bangkok later this year

The exhibition will run from March through next year. “Spectrosynthesis II- Exposure of Tolerance: LGBTQ in Southeast Asia”, the largest-ever survey of regional contemporary art, will explore gender issues and feature more than 200 works by 50 artists. It will open at the Bangkok Art and Culture Centre (BACC) on November 23 and run until March 1 next year. The exhibition received huge critical acclaim when it was first staged in Taiwan 2017, after which its Hong Kong-based organiser, the Sunpride Foundation, chose Bangkok as its second stop. “Bangkok is my second home and Thailand is the most friendly LGBT country in Asia and the more liberal nation,” said Patrick Sun, founder of Sunpride Foundation. “Taiwan is the one of th


By The Nation (Thailand)
January 10, 2019

Curiosity

Ex-ambassador urges former colleague to defect to South Korea

A feature story from Korean Herald outlining the intricacies of a possible defection by Pyongyang’s ambassador in Italy. A former senior North Korean diplomat who defected to the South in 2016 on Saturday urged a former colleague who has gone into hiding before ending his term in Italy to come to Seoul, as opposed to the US where he is reportedly seeking asylum. Thae Yong-ho, who was the deputy ambassador in London and the most recent senior diplomat to defect, wrote an open letter to Jo Song-gil, 44, until recently North Korea’s acting ambassador to Italy, who fled the Rome embassy with his wife in early November without notice. Jo became


By The Korea Herald
January 7, 2019