Ghosn held $260,000 Rio party billed to Renault-Nissan

Former Renault and Nissan head Carlos Ghosn is under arrest in Tokyo facing charges of financial misconduct. (AFP)
Updated 21 February 2019

Ghosn held $260,000 Rio party billed to Renault-Nissan

  • Ghosn invited eight couples to watch the Carnival parade in Rio de Janeiro in February last year from a beach-side luxury hotel
  • News of the party is the latest evidence of Ghosn’s expensive lifestyle to emerge as his time as one of the top executives in the auto industry faces fresh scrutiny

PARIS: Former Renault and Nissan head Carlos Ghosn and his wife invited friends to a $260,000 Carnival party in Brazil last year and charged it to his employers, documents seen by AFP show, a move Ghosn’s lawyer defended as a routine corporate function for a multinational CEO.
News of the party is the latest evidence of Ghosn’s expensive lifestyle to emerge as his time as one of the top executives in the auto industry faces fresh scrutiny following his arrest in Tokyo last November.
According to documents seen by AFP, which confirm a report in the Express magazine, Ghosn invited eight couples to watch the Carnival parade in Rio de Janeiro in February last year from a beach-side luxury hotel.
While the guests were asked to pay their own air fare, the invitations specified that local teams would take charge of transport, lodging and other expenses.
“On behalf of Mr. and Mrs. Ghosn, I have the pleasure to inform you that they would be delighted if you would accept to be their guest at the 2018 Rio Carnival,” according to the December 2017 email invitation.
“You will be responsible to book your flight and the team will take care of you from the Rio airport,” it said, adding that the guests would be staying at the beachside Hilton Hotel in Copacabana.
The event required costly security measures including two bullet-proof vehicles which were put at the guests’ disposal.
Nissan’s Brazilian subsidiary later sent a bill of $257,872 (€227,000) to the Renault-Nissan holding company based in the Netherlands.
The Dutch firm coordinates the operations of the French-Japanese alliance, which Ghosn built into the world’s top-selling automotive group before his stunning downfall on charges of under-reporting his salary.
The 64-year-old French-Brazilian-Lebanese executive has denied any wrongdoing, but remains in detention awaiting a trial in Japan which could still be months away.
“Friendly relations do not preclude business relations, they can even help them,” Ghosn’s French lawyer Jean-Yves Le Borgne told AFP.
“We’re told it involved Carlos Ghosn’s personal relationships, but does that mean we can conclude there was some form of misuse of funds at the alliance?” he said.
Among the guests were Mario Saradar of the family-owned Lebanese banking group, where Ghosn sits on the board; and Misbah Ahdab, a Lebanese lawmaker.
American property developer Harry Macklowe was also invited, as was Khalil Daoud, head of the Lebanese postal service.
“Before getting indignant, we should check if they were truly not involved in any Renault-Nissan business,” Le Borgne said, noting that the Lebanese post office “required a large fleet of automobiles.”
Renault has said it is reviewing Ghosn’s tenure as chief executive, a post he resigned last month following his dismissal as chairman of Nissan and their other alliance partner Mitsubishi.
Earlier this month, Renault said it had informed prosecutors about a suspect transaction involving Ghosn’s extravagant wedding at the Versailles Palace outside Paris in 2016.
Versailles waived the usual €50,000 rental fee for the wedding under a sponsorship deal signed between the palace and Renault months before.
Le Borgne has said Ghosn is ready to repay the bill.


Banking shares help key Saudi index edge up 0.2 percent

Updated 40 min 29 sec ago

Banking shares help key Saudi index edge up 0.2 percent

  • Property shares weigh on Egypt; other Gulf markets mixed

Most Gulf stock markets moved marginally amid falling oil prices on Wednesday, while Egypt’s blue-chip index declined, led by property shares.

DUBAI: Oil prices slipped toward $59 a barrel on data showing a bigger-than-expected rise in US crude stocks, while the prospect of deeper output cuts by the Organization of the Petroleum Exporting Countries (OPEC) and its allies offered support.

Saudi Arabia’s index extended gains from the previous session to close 0.2 percent up. Al-Rajhi Bank gained 0.7 percent, while Alinma Bank rose a further 1.3 percent.     

On Tuesday, Alinma reported a rise in third-quarter profit to SR713 million ($190.10 million) compared to 637 million a year earlier.    

However, gains were capped by losses in petrochemical stocks.

Sahara International Petrochemical (Sipchem) slid 2.8 percent following a more than 38 percent plunge in third-quarter net profit.

The petrochemical maker said it was due to a decrease in selling prices for most of the products.

Egypt’s blue-chip index decreased 0.5 percent, with most stocks on the index falling. Property stock Talaat Mostafa lost 1.7 percent and El-Sewedy Electric was down 1.5 percent. Among other stocks, developer Madinet Nasr also decreased 1.9 percent. 

Egypt’s nonoil private sector contracted for the second consecutive month in September, according to the IHS Markit Egypt Purchasing Managers’ Index (PMI).     

In Dubai, the index closed 0.3 percent down with Emaar Properties shedding 1.1 percent and Dubai Islamic Bank  falling 0.6 percent. 

The Abu Dhabi Index added 0.3 percent, extending gains for a third straight session, with First Abu Dhabi Bank and Aldar Properties gaining 0.4 percent and 1.8 percent respectively. 

Qatar’s index dipped 0.2 percent, extending losses for a fifth straight session, as Qatar Fuel declined 1.6 percent and Mesaieed Petrochemical ended 2.2 percent lower.

But Commercial Bank edged up 0.2 percent after it reported a rise in nine-month profit to QR1.50 billion ($412.09 million) compared to QR1.35 billion a year earlier.