It has been 13 months down the road already since the first episode of Carlos Ghosn Saga premiered in front of the whole world. Mr Ghosn is currently an internationally known face but in connection with the charges against him for under-reporting his salary by about half over a period of five years. The initial arrest of Mr Ghosn took place in the month of November in 2018.
Further probes into the matter only added to the charges against Mr Ghosn. But first, let us get to know more about the unwanted hero of this saga.
The Lead Character
Carlos Ghosn, former head of Renault and CEO of Nissan, is a multimillionaire and a big mouthpiece for the global auto industry. Carlos Ghosn is also accredited for the revival of Nissan in the auto-industry during his term as the CEO of Nissan.
Ghosn was born in Brazil and holds a passport from Brazil, Lebanon and France. Ghosn joined Renault in the year 1996 and was appointed as the CEO of Renault during the year 2005.
For his competence to penetrate through the stiff business practices that prevail in Japan and restoring Nissan’s business to profitability, Ghosn was provided a new name of the “icebreaker” by previous DaimlerChrysler chair Jürgen Schrempp.
Not only, Nissan and Renault, but Ghosn also put together Mitsubishi Motors as well under an alliance where the companies could share costs and components.
The alliance between Groupe Renault, Nissan Motor Company and Mitsubishi Motors is the longest-lasting and most productive cross-cultural partnership in the auto industry and represent the world’s largest automotive alliance focused on collaboration and maximising synergies to boost the competitiveness of the companies.
Carlos Ghosn has been a name in Japan for over 20 years and has gained praises from the people for his style of management in the Japanese business culture.
As the role of Nissan, Mr Ghosn had become a hero for many with his unique approach of management where he talked to the lowest level of employees directly and welcomed their involvement in bringing Nissan back into the business.
With all the success, fame and followers across the world, why is Ghosn wanted Afterall?
Action in the Saga
Since his initial arrest on 19 November 2018 in Tokyo for charges relating to the financial misconduct and under-stating of his salary by about half for over half a decade’s period, it has been a guest in the police custody time and again.
Following the arrest, Ghosn was removed from the chairman’s position in Nissan’s board and discharged from his roles and responsibilities in Mitsubishi Motors.
More allegations against Ghosn unpacked as the investigation proceeded. In December 2018, the Japanese prosecutors officially charged Ghosn as well as Greg Kelly for relocating losses from private financial investments to Nissan. In addition to this, Ghosn along with Kelly was rearrested for allegations of additional under-statement in the past three years.
Additional two fresh charges for financial misconduct were reported against Ghosn by the prosecutors in January 2019, following which Ghosn was initially denied bail but was granted upon third bail request for $9 million.
Ghosn was further rearrested in April 2019 when investigations probed suspicious payments to a Nissan distributor in Oman, along with an additional charge of aggravated breach of trust that mounted the stack of allegations against Ghosn.
Ghosn was alleged for drawing off money for individual interest out of the cash transferred to a dealership in Oman from Nissan. Things got worse with a ban on Ghosn from leaving Japan and he was not allowed to see his wife without permission from the court.
The investigation didn’t look like stopping so did the mounting allegations on Ghosn. Further allegations came up when 11 million euros worth of doubtful and unclear expenses at the Dutch subsidiary RNBV, jointly owned with Nissan, was discovered under an internal audit by Renault France, which included Mr Ghosn’s unconfirmed spending and overpricing for his airplane travel.
Severe investigations hinted towards further allegations against Ghosn shared with the next appointed CEO of Nissan. During September 2019, Ghosn added to his bag of charges a claim by the US securities regulators for withholding more than $140 million in his likely retirement income from investors. Following this, the U.S. Securities and Exchange Commission banned him from serving as a corporate executive for 10 years.
Late for Christmas Celebrations
House arrested former CEO of Nissan escaped from Japan on 29 December and arrived in the capital city of Lebanon, Beirut. Ghosn might have been late for celebrating Christmas at home (since he grew up in Lebanon), but he was on time for the New Year celebrations.
He was seen in Lebanon after escaping Japan, apparently disregarding the terms of bail. Media speculations say that Ghosn might have escaped due to Japan’s high rate of conviction in criminal prosecutions and the charges against Ghosn would likely carry severe long-term service in prison.
It is but obvious that Japan seeks to bring back Mr Ghosn and resume with the trials, but the rest is suspense.
This thriller saga is still in suspense as we await the further developments that take place in the case with next episode likely in line given that Mr Ghosn has Lebanese, French and Brazilian citizenship.
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