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

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.”

US not renewing sanctions waivers for importing Iranian oil, working with Saudi Arabia and UAE

Updated 30 min 16 sec ago

US not renewing sanctions waivers for importing Iranian oil, working with Saudi Arabia and UAE

WASHINGTON: President Donald Trump said the US would be ending sanction waivers for countries importing Iranian oil, increasing economic pressure on the regime, according to a White House Statement.

Secretary of State Mike Pompeo was to discuss the move at the State Department Monday morning. The decision means sanctions waivers for five nations, including China and India and U.S. treaty allies Japan, South Korea and Turkey, will not be renewed when they expire on May 2.

The statement said that the US, Saudi Arabia and the UAE had "agreed to take timely action to assure that global demand is met as all Iranian oil is removed from the market."

White House economic adviser Kevin Hassett said on Monday that he believed global oil markets would be able to handle the US decision to force buyers of Iranian oil to either end imports or face sanctions, despite Monday's surge in oil prices.

"I think that the global oil markets are poised to be able to deal with this," Kevin Hassett said in an interview with CNBC. 

The move comes as the administration toughens its already strict penalties on Iran by trying to choke off all the revenue the country makes from oil sales.

The waivers had been in place since November, when the administration re-imposed sanctions on Iran after President Donald Trump withdrew the US from the 2015 nuclear deal with Iran.

They were granted in part to give those countries time to eliminate their purchases of Iranian oil but also to ease any impact on global energy markets with the abrupt removal of Iran's production.

Pompeo says now that production increases elsewhere will make up for the loss of Iranian oil on the market.

(With Agencies)