Ghosn’s income under-reporting ‘may reach $71 million’

This file photo taken on September 15, 2017 shows Renault-Nissan chairman and CEO Carlos Ghosn gesturing as he addresses a press conference in Paris. (File/AFP)
Updated 23 November 2018
0

Ghosn’s income under-reporting ‘may reach $71 million’

  • The Brazil-born tycoon is now reportedly set to face a new charge from prosecutors
  • Prosecutors arrested Ghosn, accusing him of understating his income

TOKYO: Nissan’s disgraced former chairman Carlos Ghosn under-reported his income by a total of $71 million — much more than initially suspected — Japanese media reported Friday.
The Brazil-born tycoon is now reportedly set to face a new charge from prosecutors, after he was sacked as Nissan chairman Thursday to top a spectacular fall from grace for the once-revered boss whose fall has stunned the business world.
Prosecutors arrested Ghosn Monday, accusing him and fellow executive Greg Kelly of understating the former chairman’s income by around five billion yen ($44 million) between June 2011 and June 2015.
But Ghosn is now suspected of under-reporting his income by another three billion yen for the following three fiscal years, the Asahi Shimbun and the Nikkei business daily reported.
Prosecutors are now planing to re-arrest him on charges of understating his income by a total of eight billion yen ($71 million) since June 2011, the Asahi said.
Immediate confirmation of the reports was not available.
Under Japanese law, suspects in jail can face additional arrest warrants, which can impose heavier charges.
Ghosn is also suspected of failing to report a profit of four billion yen through stock appreciation rights — a method for firms to give management a bonus on strong earnings, the Nikkei said.
Separately, the Kyodo news agency has reported that Nissan had paid $100,000 a year since 2002 to Ghosn’s sister who had no record of doing advisory work for the group.
Deputy chief prosecutor Shin Kukimoto said the Ghosn case is “one of the most serious types of crime” under Japan’s Financial Instruments Act, and Ghosn could face a 10-year prison sentence.
His ouster is an astonishing turnaround for a titan of the auto sector who revived the Japanese brand and forged an alliance with France’s Renault as well as domestic rival Mitsubishi Motors.
The French and Japanese finance ministers reiterated their “strong support” for the alliance at a meeting in Paris on Thursday.
In a joint statement, Bruno Le Maire and Hiroshige Seko said they both wanted “to maintain this winning cooperation.”
Asked about the fate of the alliance, Seko told reporters in Paris: “It is important for people concerned to deal with it after they agree and fully understand.”


India’s Modi stares at biggest election loss since coming to power

Updated 11 December 2018
0

India’s Modi stares at biggest election loss since coming to power

  • Analysts say a big loss for Modi’s Bharatiya Janata Party would signify rural dismay and help unite the opposition
  • Poll analysts cautioned that with the counting in preliminary stages, it was still too early to predict the outcome of state races involving millions of voters

NEW DELHI: India’s ruling party could lose power in three key states, four TV networks said on Tuesday, citing votecount leads, potentially handing Prime Minister Narendra Modi his biggest defeat since he took office in 2014, and months ahead of a general election.
The main opposition Congress party could form governments in the central states of Chhattisgarh and Madhya Pradesh, and in the western state of Rajasthan, all big heartland states that powered Modi to a landslide win in the 2014 general election.
Analysts say a big loss for Modi’s Bharatiya Janata Party would signify rural dismay and help unite the opposition, despite his high personal popularity in the face of criticism that he did not deliver on promises of jobs for young people and better conditions for farmers.
“We’ve all voted for Congress this time and our candidate is winning here,” said Bishnu Prasad Jalodia, a wheat grower in Madhya Pradesh, where it appears as if Congress might have to woo smaller parties to keep out Modi’s party.
“BJP ignored us farmers, they ignored those of us at the bottom of the pyramid.”
The elections are also a test for Rahul Gandhi, president of the left-of-center Congress, who is trying to forge a broad alliance with regional groups and face Modi with his most serious challenge yet, in the election that must be held by May.
In Rajasthan, the Congress was leading in 114 of the 199 seats contested, against 81 for the BJP, in the initial round of voting, India Today TV said.
In Chhattisgarh, the Congress was ahead in 59 of the 90 seats at stake, with the BJP at 24. In Madhya Pradesh, the most important of the five states that held assembly elections over the past few weeks, Congress was ahead, with 112 of 230 seats. The Hindu nationalist BJP was at 103, the network said.
Three other TV channels also said Congress was leading in the three states, with regional parties leading in two smaller states that also voted, Telangana in the south and Mizoram in the northeast.
Poll analysts cautioned that with the counting in preliminary stages, it was still too early to predict the outcome of state races involving millions of voters.
Local issues usually dominate state polls, but politicians are seeing the elections as a pointer to the national vote just months away.
Indian markets recovered some ground after an early fall as the central bank governor’s unexpected resignation the previous day shocked investors.
The rupee currency dropped as much as 1.5 percent to 72.465 per dollar, while bond yields rose 12 basis points to 7.71 percent after the resignation of Reserve Bank of India Governor Urjit Patel.
The broader NSE share index was down 1.3 percent, with investors cautious ahead of the election results.
“As the three erstwhile BJP states have a large agrarian population, the BJP’s drubbing could be interpreted to mean that farm unrest is real,” Nomura said in a research note before the results.
“A rout of the BJP on its homeground states should encourage cohesion among the opposition parties to strengthen the non-BJP coalition for the general elections.”
Gandhi, the fourth generation scion of the Nehru-Gandhi dynasty, has sought to build a coalition of regional groups, some headed by experienced firebrand, ambitious politicians.
Congress has already said it would not name Gandhi, who is seen as lacking experience, as a prime ministerial candidate.
“When one and one become eleven, even the mighty can be dethroned,” opposition leader Akhilesh Yadav said of the prospect of growing opposition unity.