Carlos Ghosn invited several guests to a Carnaval party in Rio de Janeiro in 2018 that was paid for by the Renault-Nissan alliance he used to lead Photo: AFP/File
crime

Ghosn ready to repay cost of Versailles wedding: lawyer

31 Comments
By Eric Piermont

Detained former Renault boss Carlos Ghosn is ready to repay a 50,000-euro ($57,000) bill for his wedding party at the Palace of Versailles which was waived under a sponsorship deal with the French car group, his lawyer said Friday.

Renault said Thursday that it would report the incident to prosecutors after learning that the famed chateau on the outskirts of Paris had waived its usual rental fee under a sponsorship deal signed in 2016.

Ghosn's lawyer in France, Jean-Yves Le Borgne, told AFP that the executive "stands ready" to repay the money, adding that his client was "not aware he owed it because he had not been billed".

"He thought it was free," Le Borgne added.

The waived bill could amount to the misuse of company resources, as well as tax evasion, if the benefit-in-kind was not declared to French authorities.

Ghosn's tenure as CEO has come under the microscope since his arrest last November in Japan on charges he under-reported millions of dollars in pay as head of Nissan, Renault's alliance partner.

His subsequent indictment on three charges of financial misconduct has led to renewed scrutiny of his management and lifestyle at both companies while he sits in a Tokyo jail awaiting trial.

Ghosn and his second wife Carole threw a Marie Antoinette-themed dinner and party at the former royal residence at Versailles, complete with entertainers in period costumes, on October 8, 2016.

In a statement, the Chateau de Versailles said Renault had signed a 2.3-million-euro sponsorship deal with the palace in June 2016, a few months before Ghosn's wedding.

Under the terms of the deal, Renault could benefit in return from Versailles access and other services worth a maximum 25 percent of the deal, in this case around 575,000 euros, it said.

© 2019 AFP

©2019 GPlusMedia Inc.


31 Comments
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Sheesh, the filthy rich. Ghosn's mistreatment does not mean he is an honorable man.

1 ( +12 / -11 )

Free Ghosn!

-2 ( +11 / -13 )

"He thought it was free," Le Borgne added.

Yes, it is common sense that you write an application, and Versailles will let you use the royal residence for free, and provide a Marie Antoinette-themed dinner and party, complete with entertainers in period costumes. All for free.

I thought of doing it for my wedding, but it was a hustle to go all the way to Paris. Used the imperial palace instead.

11 ( +15 / -4 )

Laguna & oldman are right

its amazing that's the Japanese Ministry of Justice assisted Nissan in the coup...Japan is really an extraordinary country when it comes to assessing and reprimanding wrongdoing :

Fukushima disaster : the whole government was responsible for collective blindness and so was TEDCO hierarchy , thousands of victims !! at a cost of hundreds of Billions of ¥

Lessons in Leadership from the Fukushima Nuclear Disaster

http://knowledge.wharton.upenn.edu/article/lessons-leadership-fukushima-nuclear-disaster/

It was a profoundly man-made disaster that could and should have been foreseen and prevented,” said Kiyoshi Kurokawa, chairman of the Fukushima Nuclear Accident Independent Investigation Commission, established by the National Diet of Japan.

no one yet in jail, the dirty linen is ( hopefully) washed behind closed doors

Carlos Ghosn disaster : Renault , rescued a company, NISSAN, virtually bankrupted, put it back on its feet and made it a remarkably profitable outfit , turnover above 100 billions € /yr …No victims to my knowledge …money advantages reaped by Carlos circa 0,03 % of Nissan turnover without accounting for what should be due to Carlos upon retirement

.But when one compares the situations, Fukushima vs Nissan, we cannot but be chocked at the difference of treatments which confirms that the purpose of the trial has very little to do with money! !

Japan’image in the world is already tarnished by a legal treatment akin to harassment even if the prosecutor released Ghosn US right arm, after having fell in the treacherous trap of his own making. All of this comes after Japan announced that whale killings will re-start later this year.

8 ( +17 / -9 )

It was legally paid for as a corporate event for a public figure of a publicly trading company. MANY events in publicly trading companies in Japan and abroad can claim weddings as a company event.

It is insulting, please do not comment if you are unaware of corporate law and tax laws..

-2 ( +6 / -8 )

I'm still highly critical of Japan's detention system...

"He thought it was free,"

...But that is just ridiculous. Maybe they mistranslated, 'He thought it was a gift.'

But if your Lawyers are allowing thier communications to be lost in translation...no wonder they couldn't make a case for bail?

3 ( +5 / -2 )

Spinning plates, “But if your Lawyers are allowing thier communications to be lost in translation...no wonder they couldn't make a case for bail?”

The lawyer in France quoted here is not the same as the Japanese lawyer involved in requests that He be released on bail.

-1 ( +3 / -4 )

So he admits it. Hush money. Increase his sentence. Remember the recent story for the old guy detained and arrested for overfilling his ¥100 coffee in a combini?

-3 ( +8 / -11 )

50K is seriously nothing if this is the ONLY thing they have found.

5 ( +10 / -5 )

I can see it now... his tax filing for 2018 will be due soon, and he had better be careful to report the free room and board he is receiving while he is in jail pending trial.  :)

But seriously, if that is French tax law, he was silly to not have reported it and paid the tax.

1 ( +2 / -1 )

A bit late, isn't it?

3 ( +4 / -1 )

Too late, Ghosn. Should have paid this back years ago. A real “man of the people”! lol

-3 ( +6 / -9 )

oldman_13Today  04:21 pm JST

Free Ghosn!

I have a better idea, old man. Respect the corporate laws of Japan.

-5 ( +7 / -12 )

Too late, Ghosn. Should have paid this back years ago

But...

Ghosn's lawyer in France, Jean-Yves Le Borgne, told AFP that the executive "stands ready" to repay the money, adding that his client was "not aware he owed it because he had not been billed".

"He thought it was free," Le Borgne added.

-3 ( +0 / -3 )

I do not think it is a "crime".

Nissan paid money for the repairwork of Versailles. The repair was actually done. Versailles let Nissan use the place for free to show gratitude. No crime.

The waived bill could amount to the misuse of company resources, as well as tax evasion, if the benefit-in-kind was not declared to French authorities.

I doubt. Evaluating intangible gratitude in terms of money is no business of tax office.

-4 ( +2 / -6 )

Unfortunately, it is too late, but it is also too early in a sense that he will start a chain of repayments to all charges against him. He should get out the jail as quick as possible.

-4 ( +1 / -5 )

CH3CHO, you are not a judge, are you ?

2 ( +4 / -2 )

CH3CHO,

“Evaluating intangible gratitude in terms of money is no business of tax office.”

What part of this is intangible?

Renault had signed a 2.3-million-euro sponsorship deal with the palace.

The terms of the deal were that Renault could benefit in return from Versailles access and other services worth a maximum 25 percent of the deal.

Ghosn had a wedding party that would have cost 50,000-euro but the fee was waived.

The waived bill could amount to the misuse of company resources, as well as tax evasion, if the benefit-in-kind was not declared to French authorities.
4 ( +5 / -1 )

It's unbelievable how some people here side with and protect him as if he was some spiritual leader or God despite being fully aware of his misdeeds.

@gogogo

50k is nothing? Even if it was just one cent, it's principally not zero! If we talk, then we talk about principles, not quantity.

@Kenji

Calm down lad, it's getting boring how you spread your Ghosn fetish here.

3 ( +6 / -3 )

There was no bill, so Renault wasn't charged. What's the problem again? It hurt their egos?

All the allegations thrown at him, he has a perfectly logical explanation. Crooked or not, he is way above anybody's league, especially Japan.

The only plausible charge for him is the one he did in 2008, and even that needed all the technicalities Japan can find. He is not powerful, it's just that the Nissan oyaji's are too weak. No one else there should run Nissan. Shareholders should run away.

-5 ( +2 / -7 )

Versailles let Nissan use the place for free to show gratitude. No crime.

He donated Versailles using Nissan money a few months before his wedding .  Like other circumstances, he probably donated for his personal gain. The company group has 25 percent benefit of the 2.3 million euros donated, that is 575,000 euros, of which he used 50,000 euros for his wedding. He did not pay back to the company or did not report the gain. Why not a crime?

5 ( +8 / -3 )

It is insulting, please do not comment if you are unaware of corporate law and tax laws..

Why don't you apply that to yourself. Tu connais quoi des lois en France ? Already about Japanese law, you don't seem to know the basics. Would you even be able to read the law's text ? Go ahead. Look for ABS in code de commerce, art. L. 241-3 et L. 242-6.

You will read he faces 5yrs of jail and 375K euros fine. Note that it's 7yrs and 500K if the case is international.

Nissan paid money for the repairwork of Versailles. 

No, Renault, a French company did. You're not on the Nissan thread. Ghosn has multiple unrelated cases, including one of DV Lebanon. Or that would be a huge global plot and they are all linked ?

Evaluating intangible gratitude in terms of money is no business of tax office.

You'll be surprised. Check "mécenat d'entreprise". It was defined in details by French Ministry of Culture, businesses receive big tax discounts for doing it and the other reward from the receiving institution (in this case, the usage of party venues) is defined by rules restricting it to business usage.

Apparently, that was the second event. On his 60th birthday, Ghosn already hosted a huge party in Versailles. He had it "covered" under the pretext of the anniversary of Nissan-Renault Alliance (but then why on HIS day not the Alliance's day ?). The guests were a few Nissan and Renault execs, and auditors say all the others are unknown as Nissan/Renault staff/partners and they seem to be friends/relatives of Mr Ghosn (his b-day guests).

6 ( +7 / -1 )

.

"He thought it was free," 

.

What a lame excuse.

.

What's he doing being CEO of 3 auto companies when he can't figure out that he has to PAY for a party he gives.

.

Just like he has to pay for a meal in an restaurant.

.

There ain't no 'free' ride. The executive expense account is not to cover personal indulgences.

EVERYBODY know that!

.

.

4 ( +7 / -3 )

.

But wait !!!!

.

Renault under new CEO Senard will be uncovering more misappropriation of moneys under Ghosn's tenure.

.

This is just the tip of the corruption iceberg.

.

2 ( +5 / -3 )

@coskuri

.

Excellent post.

Indeed he passed the bill for his lavish 60th BIRTHDAY Party ( costing Euro 600,000) on to Renault.

The new CEO, Senard , has referred Ghosns misappropriation of funds in France to the French prosecutor there.

1 ( +4 / -3 )

I have a better idea, old man. Respect the corporate laws of Japan.

oh you meanlike Kobe Steel , KYB, Olympus, Toshiba various Japanese banks, and how many of their CEO spent time in detention or even in prison, or is the magical apologetic bow all that is needed to clear Japanese of not "Respecting the corporate laws of Japan"

-1 ( +6 / -7 )

coskuri

Bonjour! MOST countries not only in Japan (though especially in Japan)

CAN claim weddings/birthdays/Christmas/bar mitzvah or whatever religous event as a claimed company event.

La Farto de frog is saying anything in a negative light.

Is that registering for you Mousier frog?

-3 ( +1 / -4 )

The financial dept who PAID for the event as a COMPANY event would be no mystery because their footing the bill and would of went to multiple channels, so you're la frog news media is stating as a surprise when wouldn't all departments who approved and paid for the event prior would know it's WITHIN french laws to begin with? Logic

-3 ( +1 / -4 )

How can any company event be paid for without the knowledge of the CFO and accountants and of course lawyers at the time to the present time. Hence why la frog is useless as our useless media only speculation and accusations without logic or evidence of wrong doing even prior to a proper court trial

-3 ( +1 / -4 )

Media is throwing any 'news' on a constant basis to pile up so the common layman's can agree to public opinions being shaped so people as zombies agree to it easily without logic or hard facts. As mentioned investigative journalism died decades ago..

Yeah they reported WMD 'facts' perfectly in Iraq ha..

-2 ( +1 / -3 )

French Government owns a large stake in Renault Versailles is a gov owned entity, multiple channels financial dept, accountants, lawyers would of been involved, so how is this news exactly?

-3 ( +1 / -4 )

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