Ghosn may face longer detention as new allegations are made

The first detention of Ghosn, which has itself been extended twice, will be closed on 10 December.

TOKYO – New details of Carlos Ghosn's alleged financial misconduct are coming to light in the face of rising speculation that the expelled Nissan president could be arrested by Japanese prosecutors again and possibly be held almost by the end of the year while investigators make new accusations against keep the light.

One of the new accusations is that the total remuneration of Ghosn in the 2016 and 2017 financial year has reduced the total directors' remuneration to the company above a ceiling set by the shareholders.

This claim came on top of earlier reports from the Japanese Asahi and Nikkei newspapers that Ghosn had been able to pass on personal losses of more than one billion yen ($ 8.8 million) from derivatives trading to the Japanese car manufacturer in 2008 during the global financial crisis.

Meanwhile, the Japanese media say that Ghosn can be arrested again and his detention can be extended again. Ghosn was arrested on November 19 and can be held by prosecutors for up to 22 days. After that period he must be charged or dismissed. But Japan's legal system also allows for the retaliation of various charges, allowing the prosecutor to hold suspects for an indefinite period of time.

The first detention of Ghosn, which has itself been renewed twice, will end on December 10th. But prosecutors will probably arrest him again, in the midst of suspicions that he underestimated the compensation for a longer period, which was previously investigated, according to the newspapers Asahi and Sankei in Japan. That could reset the clock completely and keep Ghosn locked up for up to 20 days until 30 December.

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Prosecutors have initially arrested Ghosn to investigate his alleged under-reporting of compensation in the financial years 2010-2014. Now they look at his report for the financial years 2015-2017. Nissan's internal investigation into the case accuses Ghosn of hiding approximately 9 billion yen ($ 79 million) in damages during those eight years in an arrangement that would have paid him later.

During his interrogations Ghosn denied any mistake, say Japanese media. The lawyers of the suspected co-conspirator Greg Kelly have also said that their client has not violated the law.

Under the new details, Ghosn is suspected of receiving 2.5 billion yen ($ 22.0 million) of total compensation – reported and postponed – over the two financial years up to and including 31 March 2018. Combined with the remuneration of the other directors , the total wage to all drivers exceeds 3 billion yen ($ 26.4 million), reported Nikkei. That would exceed a ceiling of 2.99 billion yen ($ 26.3 million) above the total board wages set by the shareholders at their annual meeting in June 2008.

A person familiar with the case confirmed that, if Ghosn's unrecognized reimbursement is included, the total directors' remuneration for both years is assumed to have exceeded the limit.

New chairman

The developments are coming because the three Nissan external directors reportedly met on Tuesday to start the nomination process for Ghosn & # 39; s replacement as chairman of the board. A Nissan spokesperson could not comment on media reports that the meeting was under way.

Nissan CEO Hiroto Saikawa said earlier that the three had the task of nominating a new chairman from the current directors.

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A person familiar with the case said that the entire board is scheduled to meet December 17 to vote on a new chair. Nissan would still have to convene an extraordinary shareholders' meeting to vote on the removal of Ghosn and Kelly as directors. Kelly was also arrested on November 19 and is accused by Saikawa of being the "mastermind" behind the alleged plan of Ghosn.

A shareholders meeting could take place as early as early January, the person said.