Ghosn used company funds for private events, says Nissan

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Ghosn used company funds for private events, says Nissan

Nissan Motor Co. said Thursday that former chairman Carlos Ghosn had used company funds for private events abroad, including a party at the Palace of Versailles, where guests were paid for the Rio de Janeiro carnival.

In a corporate governance report submitted to the Tokyo Stock Exchange, Nissan said that its joint venture with Renault SA was at least € 4.9 million (¥ 601.3 million) as “personal expenses of Mr. Ghosn and regardless of the corporate purposes of the company Company “.

The Renault-Nissan BV joint venture also paid for Ghosn’s dinner at the Marmottan Museum in Paris, gifts bought at the luxury jewelry store Cartier, and attorney fees for a law firm in Lebanon, a country where Nissan, as a Japanese automaker, did little business said.

In a report outlining measures to improve governance after Ghosn’s arrest for alleged financial misconduct in 2018, Nissan also stated that his board had decided to remove the positions of advisors and advisers who had been assigned to retired directors, abolish.

“None of these officers are involved in day-to-day operations, making business decisions, or attending management meetings,” said Nissan in his status report on improvement measures.

Nissan has decided to punish three other people than Ghosn and Greg Kelly, the former deputy director, who was arrested for allegedly conspiring with the former chairman, for their involvement in the financial misconduct, the company said without further elaboration.

Nissan said the three unnamed companies hold department heads or higher positions and are currently in positions that have a strong impact on corporate governance.

The TSE has instructed Nissan to improve its internal controls after the automaker has corrected its safety reports to adjust Ghosn’s compensation.

According to the TSE, the company has reported violations of stock exchange rules regarding information that could affect investor decisions.

The Tokyo prosecutor accused Ghosn of failing to properly report his billion yen compensation in Nissan’s securities reports in the eight years to March 2018, as well as misusing corporate funds.

Ghosn, who fled Japan to Lebanon on bail at the end of last month, denies the allegation.

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