Nissan ex-chairman Ghosn expected to be indicted on Monday

Carlos Ghosn was sacked by Nissan
Updated 07 December 2018
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Nissan ex-chairman Ghosn expected to be indicted on Monday

  • Nissan and the two former executives would likely be indicted over misstatements in five annual reports through the fiscal year that ended in March 2015
  • Ghosn was arrested for allegedly conspiring to understate his income by about half of the actual 10 billion yen ($88.66 million) over five years from 2010

TOKYO: Tokyo prosecutors plan to indict former Nissan Motor Co. Ltd. Chairman Carlos Ghosn on Monday for financial misconduct, the Nikkei business daily reported, ratcheting up their case against the auto tycoon.
Prosecutors also plan to indict on the same day former representative director Greg Kelly as well as the automaker itself, the Nikkei said on Friday, citing unidentified sources.
The Nov. 19 arrest of Ghosn and Kelly shook the foundations of the Renault-Nissan alliance and stunned the auto industry, where Ghosn is renowned for turning around the French and Japanese carmakers. Ghosn remains chairman and chief executive of Renault SA.
Ghosn and Kelly’s detention period runs until Monday, when prosecutors must decide to indict, release, or rearrest them on new claims.
The Nikkei said the two former executives and Nissan would likely be indicted over the alleged underreporting of salaries in five annual reports through the business year that ended in March 2015.
Ghosn and Kelly are also likely to be rearrested on suspicion of making misstatements in reports for the subsequent three business years, the newspaper reported.
The Nikkei said making false statements in an annual report was a crime for which not just the individuals involved but also companies can be held accountable, and prosecutors wanted to charge Nissan for not preventing the alleged crime.
Representatives for the Tokyo District Public Prosecutor’s Office and Nissan declined to comment.
Ghosn was arrested for allegedly conspiring to understate his income by about half of the actual 10 billion yen ($88.66 million) over five years from 2010. Kelly was accused of assisting.
Ghosn and Kelly have not made any statement through their lawyers, but Japanese media reported that they have denied the allegations. 


Dubai real estate market recovery to be seen as of 2022: S&P

Updated 20 February 2019
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Dubai real estate market recovery to be seen as of 2022: S&P

  • The outlook on property was part of a challenging assessment of the credit-worthiness of the emirate
  • S&P was generally comfortable with the credit ratings of the emirate’s banking system

DUBAI: S&P Global, the ratings agency, painted a grim picture for the real estate sector in Dubai, with a meaningful recovery in property prices expected only after 2022.
At a presentation to journalists in the Dubai International Financial Center, S&P analyst Sapna Jagtiani said that under the firm’s “base case scenario,” the Dubai real estate market would fall by between 5 and 10 percent this year, roughly the same as the fall in 2018, which would bring property prices to the levels seen at the bottom of the last cycle in 2010, in the aftermath of the global financial crisis.
“On the real estate side we continue to have a very grim view of the market. While we expect prices to broadly stabilize in 2020, we don’t see a meaningful recovery in 2021. Relative to the previous recovery cycle, we believe it will take longer time for prices to display a meaningful recovery,” she said.
S&P’s verdict adds to several recent pessimistic assessments of the Dubai real estate market. Jagtiani said that conditions in the other big UAE property market, in Abu Dhabi, were not as negative, because “Abu Dhabi never did ramp up as much in 2014 and 2015 as Dubai.” S&P does not rate developers in the capital.
She added that a “stress scenario” could arise if government and royal family related developers — such as Emaar Properties, Meraas, Dubai Properties and Nakheel — which have attractive land banks and economies of scale, continue to launch new developments.
“In such a scenario, we think residential real estate prices could decline by 10-15 percent in 2019 and a further 5-10 percent in 2020. In this case, we expect no upside for Dubai residential real estate prices in 2021, as we expect it will take a while for the market to absorb oversupply,” she said.
S&P recently downgraded Damac, one of the biggest Dubai-based developers, to BB- rating, on weak market prospects.
However, Jagtiani said that, despite the “significant oversupply” from existing projects, several factors should held stabilize the market: Few, if any, major product launches; improved affordability and “bargain hunting” by bulk buyers; and a resurgence of Asian, especially Chinese, investor interest in the market.
Jagtiani also said that government measures such as new ownership and visa regulations and reduction in government fees could help prevent prices falling more sharply, as well as “increased economic activity related to Dubai Expo 2020, which is expected to attract about 25 million visitors to the emirate.”
The outlook on property was part of a challenging assessment of the credit-worthiness of the emirate. “In our view, credit conditions deteriorated in Dubai in 2018, reducing the government’s ability to provide extraordinary financial support to its government related entities (GREs) if needed,” S&P said in a report. “The negative outlook on Dubai Electricity and Water
Authority (DEWA) partly reflects our concern that a real estate downturn beyond our base case could out increased pressure on government finances,” the report said.
It pointed out that about 70 percent of government revenues come from non-tax sources, including land transfer and mortgage registration fees, as well as charges for housing and municipality liabilities, as well as dividends from real estate developers it controls, like Emaar and Nakheel.
S&P was generally comfortable with the credit ratings of the emirate’s banking system, which has an estimated 20 percent exposure to real estate. “Banks in the UAE tend to generally display a good level of profitability and capitalization, giving them a good margin to absorb a moderate increase in risks,” the report said.