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.”


Taliban talks resume amid hopes of deal

Updated 22 August 2019

Taliban talks resume amid hopes of deal

  • The disclosure came in a context of ongoing bloodshed in Afghanistan after NATO said two US military personnel were killed Wednesday
  • Washington is hoping to strike an agreement with the Taliban by September 1 — ahead of Afghan polls due the same month

DOHA: The US and the Taliban met in Doha on Thursday, an American source close to the talks said, for potentially decisive dialogue to allow Washington to drawdown militarily in Afghanistan.
The source said the talks started around 1300 GMT — the ninth time the two foes have met face-to-face.
The disclosure came in a context of ongoing bloodshed in Afghanistan after NATO said two US military personnel were killed Wednesday, blasts rocked Jalalabad Monday, and the death toll from a weekend wedding bombing reached 80.
Washington’s top commander in Afghanistan General Scott Miller was at the talks venue, according to an AFP correspondent.
The US, which invaded Afghanistan and toppled the Taliban in 2001, wants to withdraw thousands of troops but only in return for the insurgent group renouncing Al-Qaeda and curbing attacks.
Washington is hoping to strike an agreement with the Taliban by September 1 — ahead of Afghan polls due the same month, and US presidential polls due in 2020.
Taliban lead negotiator Abbas Stanikzai told AFP Thursday that overall talks had been “going well.”
The talks are expected to focus on establishing a timeline for the US withdrawal of its more than 13,000 troops in Afghanistan.
“We’ve been there for 18 years, it’s ridiculous,” US President Donald Trump told reporters Tuesday.
“We are negotiating with the government and we are negotiating with the Taliban,” he said.
“We have good talks going and we will see what happens.”
But the thorny issues of power-sharing with the Taliban, the role of regional powers including Pakistan and India, and the fate of Afghanistan’s incumbent administration remain unresolved.
US envoy Zalmay Khalilzad sought to bolster optimism for a peace agreement last week when he said in a tweet that he hoped this is the final year that the country is at war.