Detained again, Nissan ex-chief Ghosn says arrest is ‘outrageous’

Former Nissan Motor Chairman Carlos Ghosn leaves his lawyer's office in Tokyo, Japan on April 3, 2019. (Kyodo/via REUTERS)
Updated 04 April 2019
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Detained again, Nissan ex-chief Ghosn says arrest is ‘outrageous’

  • Prosecutors arrest Ghosn who had been released on bail
  • Media report that arrest was over Oman allegation

TOKYO: Japanese prosecutors arrested ousted Nissan Motor Co. boss Carlos Ghosn for a fourth time on Thursday, on what media reports said was a new case over improper payments made by the automaker to a dealer in Oman under his watch.
The re-arrest, which national broadcaster NHK described as a highly unusual move for someone who has been released on bail, marks the latest dramatic twist in the once-feted executive’s fall from grace.
Prosecutors arrested Ghosn on suspicion of aggravated breach of trust, NHK said, after visiting his residence in Tokyo early on Thursday and asking him to submit to questioning. A silver van believed to be carrying Ghosn later left the residence, NHK said.
“My arrest this morning is outrageous and arbitrary,” Ghosn said in a statement emailed by a US-based spokesman.
“It is part of another attempt by some individuals at Nissan to silence me by misleading the prosecutors. Why arrest me except to try to break me? I will not be broken. I am innocent of the groundless charges and accusations against me.”
Nissan said it could not comment on judicial decisions or processes.
Footage of the vehicle leaving the residence showed its windows covered with curtains, making it impossible to see who was riding inside. More than a dozen officials from the prosecutors’ office had arrived earlier at the residence, NHK reported.
No one was immediately available for comment at the Tokyo prosecutors’ office.
The arrest comes just a day after Ghosn pledged on Twitter that he would hold a news conference on April 11 to “tell the truth” about the allegations against him.
“After being wrongly imprisoned for 108 days, my biggest hope and wish today is for a fair trial,” Ghosn added in the emailed statement.
“I was scheduled to present my story in a press conference next week; by arresting me again, the prosecutors have denied me that opportunity, for now, but I am determined that the truth will come out. I am confident that if tried fairly, I will be vindicated.”
Ghosn was first arrested in Tokyo in November and faces charges of financial misconduct and aggravated breach of trust over allegedly failing to report around $82 million in salary and temporarily transferring personal financial losses onto Nissan’s books during the financial crisis.
Released on $9 million bail on March 6, Ghosn says he is the victim of a boardroom coup.
Ghosn’s lawyer, Junichiro Hironaka, called the latest arrest “inappropriate.”

Suspect payments
Sources told Reuters earlier this week that Nissan partner Renault SA had alerted French prosecutors after uncovering suspect payments to a Renault-Nissan business partner in Oman while Ghosn was chief executive of the French automaker.
Ghosn’s spokesman has previously said payments of $32 million made over nine years were rewards for the Oman firm being a top Nissan dealer. Such dealer incentives were not directed by Ghosn and the funds were not used to pay any personal debt, the spokesman said.
Nissan had previously established its own regional subsidiary made questionable payments of more than $30 million to the Oman distributor, Suhail Bahwan Automobiles (SBA).
Evidence sent to French prosecutors late last week showed that much of the cash was subsequently channelled to a Lebanese company controlled by Ghosn associates, the sources said.
Reuters has not been able to reach SBA for comment on the matter.


Urgency needed to boost Palestinian economy: IMF chief

Updated 26 June 2019
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Urgency needed to boost Palestinian economy: IMF chief

  • The MF has been warning of severe deterioration in the Palestinian economy
  • ‘If there is an economic plan, if there is urgency, it’s a question of making sure that the momentum is sustained’

MANAMA: IMF chief Christine Lagarde said Wednesday that major economic growth was possible in the Palestinian territories if all sides showed urgency, as she took part in a US-led conference boycotted by the Palestinian leadership.
The International Monetary Fund has been warning of severe deterioration in the Palestinian economy, with tax revenue blocked in a dispute with Israel which has also imposed a crippling blockade on the Gaza Strip for more than a decade.
“If there is an economic plan, if there is urgency, it’s a question of making sure that the momentum is sustained,” said Lagarde.
The IMF chief is attending a conference in Bahrain to discuss the economic aspects of a United States plan for Israeli-Palestinian peace, which has already been rejected by the Palestinians as it fails to address key political issues.
Lagarde said for the US plan to work “it will require all the goodwill in the world on the part of all parties — private sector, public sector, international organizations and the parties on the ground and their neighbors.”
Citing examples of post-conflict countries, Lagarde said that private investors needed progress in several sectors including strengthening the central bank, better managing public finance and mobilizing domestic revenue.
“If anti-corruption is really one of the imperatives of the authorities — as it was in Rwanda, for instance — then things can really take off,” she said.
The plan presented by White House adviser Jared Kushner calls for $50 billion of investment in the Palestinian territories and its neighbors within a decade.
The proposals for infrastructure, tourism, education and more aim to create one million Palestinian jobs.
Gross domestic product in the Gaza Strip declined by eight percent last year, while there was only minor growth in the West Bank.
Kushner, opening the conference on Tuesday, called the plan the “Opportunity of the Century” — and said the Palestinians needed to accept it before a deal can be reached on political solutions.
The Palestinian Authority has rejected the conference, saying that the US and Israel are trying to dangle money to impose their ideas on a political settlement.
Washington says it will unveil the political aspects of its peace deal at a later date, most likely after Israel’s September election.