The French firm says that money for sponsorship arrangement with Versailles may have been used for former chairman's personal benefit
James Attwood, digital editor
8 February 2019

Renault says it has asked judicial authorities to look at a 50,000 euro (£44,000) contribution it made that may have been used to fund former chairman and CEO Carlos Ghosn's wedding.

The evidence, which the French firm says came to light during compliance audits undertaken following Ghosn's arrest last year on charges of financial misconduct related to his other role as chairman of Nissan. Renault says that the discovery, the first suggestion of Ghosn using Renault funds for his "personal benefit", requires "further checks to be carried out".

The contribution was part of a larger charitable donation agreement between Renault and the Chateau de Versailles, which allowed the firm to use the palace for events. Ghosn held his wedding at Versaille in 2016, and it is thought he used the venue as part of its arrangement with Renault.

According to The Financial Times, Ghosn's lawyer issued a statement offering to repay the money. It read: “Carlos Ghosn paid for all of his wedding expenses. The event space at Versailles was made available to him without charge, and Mr Ghosn was unaware that the use of the space would be charged against Renault's allotted usage.”

Renault initially kept Ghosn as chairman and CEO following his initial request, but he recently stood down from both roles to focus on his forthcoming court case in Japan. 

Former Michelin CEO Jean-Dominique Senard has now been named director and chairman, while Ghosn's former deputy, Thierry Bolloré, takes over as CEO in a move to new structure less reliant on one individual.

The French government earlier revealed that Ghosn decided to resign after reports he would be ousted from the French car maker in an emergency board meeting. The decision is believed to be an attempt to heal the rift between allies Nissan and Renault that has developed since the scandal broke. 

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A statement issued by Renault confirmed Senard "will be the main contact person for the Japanese partner and the other Alliance partners for any discussion on the Alliance's organisation and evolution". It continued: "He will propose to the Board of Directors any new Alliance agreement that he considers useful for Renault's future."

The architect and former boss of the Renault-Nissan-Mitsubishi Alliance is still detained in Japan, facing charges of serious financial misconduct. His resignation comes two months after his arrest and subsequent dismissal from Nissan

Ghosn's multi-million-pound misconduct allegations: the latest

Nissan and Mitsubishi claimed last week in a joint statement that Ghosn received £6.9 million in 'improper' payments without consulting the board. 

Ghosn has had several bail applications denied after being indicted on charges of serious financial misconduct, aggravated breach of trust and understating his income for three years. New allegations come directly from two of his former employers, claiming he failed to consult the board when receiving payments from Nissan-Mitsubishi BV (NMBV), a Netherlands-based joint venture set up to explore greater collaboration within the group. 

Prosecutors laid further charges against Ghosn last week, days after he issued a public statement claiming that he has been "wrongly accused" of serious financial misconduct.

The 64-year-old was arrested by prosecutors in Japan in November last year. His hearing at a court in Tokyo last week was his first public appearance since then.

In a prepared statement to the court issued by his legal team, Ghosn said: “I am innocent of the accusations made against me. I have always acted with integrity and have never been accused of any wrongdoing in my several-decade professional career. 

“I have been wrongly accused and unfairly detained based on meritless and unsubstantiated accusations.”

The court hearing was requested by Ghosn’s lawyers to explain the reasons for his prolonged detention. The judge, Yuichi Tada, said it was because he was considered a flight risk and there was the possibility that he could conceal evidence.

According to reports, Ghosn was led into the court in handcuffs and with a rope around his waist and appeared notably thinner than previously.

In his statement, Ghosn also listed his achievements during his time as head of Nissan, and added: “I have a genuine love and appreciation for Nissan."

He said: “I believe strongly that in all of my efforts on behalf of the company, I have acted honourably, legally and with the knowledge and approval of the appropriate executives inside the company – with the sole purpose of supporting and strengthening Nissan, and helping to restore its place as one of Japan’s finest and most respected companies.”

Ghosn denies claims in statement

Responding to the claims of under-reporting his salary, Ghosn said: “I never received any compensation from Nissan that was not disclosed, nor did I ever enter into any binding contract with Nissan to be paid a fixed amount that was not disclosed.”

Ghosn’s statement included rebuttals of several of the specific charges made against him, which include claims he moved personal investment losses totalling 1.85bn yen (£13.3m) to Nissan.

He said he did ask the company to take on the collateral temporarily due to his foreign exchange contracts but that the company didn't lose money through this move.

Ghosn has also been accused of using Nissan funds to make payments to Saudi businessman Khaled Juffali, in return for a letter of credit to help with investment losses.

In response, Ghosn said that Juffali was “appropriately contributed” for helping Nissan secure funding, solve an issue with a distributor in the Gulf region and negotiate the development of a plant in Saudi Arabia.

Representatives of the Khaled Juffali Company also issued a statement, saying that the payments it received from Nissan were "for legitimate business purposes".

Read more

Nissan to oust boss Carlos Ghosn over claims of serious financial misconduct

Nissan officially dismisses Ghosn from chairman role

Renault keeps Ghosn in CEO role

Opinion: taking stock of Nissan's claims about Carlos Ghosn

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Comments
21

8 January 2019

Some defence that, "Ghosn said he did ask the company to take on the collateral" they just took on £13 million of personal losses as a favour.

Looking forward to hearing the details although looking at past Jananese court cases they seem to involve a pay off to minimise prision sentences. 

typos1 - Just can’t respect opinion

8 January 2019

The prosecutors also need to ask the defence to cough up some documents the defendant asked his daughter to remove from one of his apartments.. possibly some incriminating info that he doesnt want revealed !

8 January 2019

 Let’s face it, he’s not the first, he won’t be the last.....

Peter Cavellini.

FM8

11 January 2019
I bet he's learning the rusty trombone to pass time.

18 January 2019
FM8 wrote:

I bet he's learning the rusty trombone to pass time.

I had to google "rusty trombone".  Thanks Wikipedia!

Luckily for Carlos, he's not exactly a pretty man.

FM8

19 January 2019
jason_recliner wrote:

FM8 wrote:

I bet he's learning the rusty trombone to pass time.

I had to google "rusty trombone".  Thanks Wikipedia!

Luckily for Carlos, he's not exactly a pretty man.

Neither is FMS, that doesn't stop them giving it a go.

FMS

23 January 2019
FM8 wrote:

jason_recliner wrote:

FM8 wrote:

I bet he's learning the rusty trombone to pass time.

I had to google "rusty trombone".  Thanks Wikipedia!

Luckily for Carlos, he's not exactly a pretty man.

Neither is FMS, that doesn't stop them giving it a go.

 

Puzzling then for your boyfriend, that you pay me SO MUCH attention...I have no objection to that...you are SUCH an outrageous flirt. Heh heh.

FM8

24 January 2019
FMS wrote:

FM8 wrote:

jason_recliner wrote:

FM8 wrote:

I bet he's learning the rusty trombone to pass time.

I had to google "rusty trombone".  Thanks Wikipedia!

Luckily for Carlos, he's not exactly a pretty man.

Neither is FMS, that doesn't stop them giving it a go.

 

Puzzling then for your boyfriend, that you pay me SO MUCH attention...I have no objection to that...you are SUCH an outrageous flirt. Heh heh.

I like it...

11 January 2019

Meanwhile, Renault’s CEO remains behind bars in Japan. Surely this situation is untenable. They are clearly reluctant to fire him but why hasn’t he temporarily stood down until the case has been heard and a decision reached?

11 January 2019

It seems to me that everyone on this forum has rushed to the judgement that Ghosn is guilty. So far all we have heard are the charges against him, none of the detail and certainly no actual evidence. These charges have been eked out in a manner (which would be considered illegal in the UK) designed to keep him behind bars for as long as possible and damage his defence. Why should Renault fire him? He hasn't been found guilty in Japan and I'm not sure that some of the things he is accused of are even crimes in France or the UK. He runs 3 car companies on 2 continents and has a Brazilian/Lebanese background....of course his tax affairs will be complex. Did anyone notice that the two arrested Directors are both non-Japanese? It would have been impossible for them to commit fraud or act improperly without the acquiesence or involvement of several Japanese colleagues. Why are isn't the Finance Director or Financial Controller implicated? Have a look at Michael Woodford's book on his time at Olympia if you want to see how corporate Japan deals with outsiders. 

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