Nissan Chairman Is Dismissed And Arrested For Financial Misconduct

Nissan chairman, Carlos Ghosn, has been arrested following findings of significant financial misconduct. His fate is now in the hands of Japanese prosecutors and the directors of three of the world’s top car companies.

Ghosn was detained by Japanese authorities after an internal investigation at Nissan which rocked the automotive world considering he was considered one of the biggest names in the global auto industry and is credited with turning around the businesses at both Nissan and Renault. Nissan reported the misconduct included significantly under-reporting his compensation and misusing company assets. Ghosn is yet to respond to the allegations.

CNN reports that Nissan carried out a months-long investigation into Ghosn and another board member after receiving a whistleblower report. Prosecutors said the two men allegedly collaborated to under-report Ghosn’s income by about 5 billion yen ($44 million) over a five-year period. There were also findings of the personal use of company assets and misuse of the company budget.

According to a Japanese public broadcaster, Nissan provided Ghosn with homes in Rio De Janeiro, Beirut, Paris and Amsterdam. He allegedly paid only a portion of the rent and did not declare the benefit. Nissan CEO Hiroto Saikawa said the company will meet Thursday to remove Ghosn and Kelly from the board.