The chief executive of Renault, chairman of Mitsubishi Motors, and also chairman of Nissan Carlos Ghosn is now facing financial misconduct. Because of the scandal that he is facing now, Nissan is planning to oust him out from his position, and aside from that, there will be a possibility that he will also meet some charges against him.
The Nissan company has informed the public that they have been doing some investigations for several months already and it shows that Carlos Ghosn has made some acts of misconduct in the company like under-reporting his pay package and even using of the company’s assets. Nissan is known to be the world’s sixth largest car maker, and their biggest car plant is in Sunderland in the UK.
As of today, Carlos Ghosn has been arrested, and according to the chief executive of Nissan, they are going to dismiss him from the Japanese firm because of his financial misconduct.
Along with him, one of the board members, Greg Kelly was also accused of financial misconduct. The whistleblower reported that Mr. Ghosn and Mr. Kelly had collaborated to under-report the income of Mr. Ghosn by about 5 billion yen ($44 million) over a five-year period ending in March 2015. In one of the reports, it is said that Nissan provided a home for Mr. Ghosn in Rio De Janeiro, Beirut, Paris, and Amsterdam. But they have found out that he assertedly paid only part of the rent and did not declare the benefit.
During the news conference, Nissan’s chief executive Hiroto Saikawa gave a statement and said that “I feel despair, indignation and resentment “As the details are disclosed I believe that people will feel the same way as I feel today.”
In Japan’s law, the maximum punishment for the crime of financial misconduct is up to 10 years in prison and a fine of up to 10 million yen ($89,000).
After saving two companies from bankruptcy, he is now on the verge of a scandal that is probably the biggest challenge for him after being successful for how many years. Carlos Ghosn has yet to confirm nor deny the allegations that are thrown at him.