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Ghosn denies allegations against him: NHK

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I seriously doubt Carlos "The Savior of Nissan" Ghosn did anything wrong. You can't convince me that Nissan was not watching it's bottom line. Most of us here work in Japan. In November, you probably submitted your year-end tax adjustment forms. We know good and well that Japanese companies handle 99% of our tax documents.

The problem here is that most people may not be aware that Japan NTA has declared by law that their tax jurisdiction extends beyond it's border if you take domicile here. It's the money he received from Renault which is most likely in question if anything. They want a cut of the money he receives from Renault as well.

His arrest is just an effort supported by unfounded claims by Nissan to justify any detainment. They'll hold him but they won't get anything out of him. This is just an attempt to make an example out of a successful "gaijin" CEO. They simply cannot have an outsider with a clean, successful record in the land of nepotism.

Then just now, in the DIET they pass a bill to allow foreign blue collar labor. Just supports the idea that Japanese wants foreigners to come and clean up their mess.

It it green eyed monster that doth mock it's prey. Carlos Ghosn did his job too well.

If you are going to work with a Japanese company, do it remotely and do not request or take any residence here.

0 ( +1 / -1 )

Many new excuses, Why ???.The current Sacho saikawa just found out that he is deeply involved in this set up.

I am sure the Japanese share-holders, Nissan customers ,employees , suppliers & Japan Inc. Knew that destroy a man's life & his family is total under handed. Only a very stupid & small hearted man Or men can do this kind of actions.

This is bad Japanese Style. Very unforgivable by all good Japanese.

1 ( +1 / -0 )

a trump never pays his debts.

0 ( +0 / -0 )

keywestToday  08:20 am JST

The board knew there are no way the board don't know, unless due to audit or accountant error ..Otherwise it is very unlikely the CEO can get renumeration under reporting without the knowledge of Board .

Actually it is very possible like what Nikkei had proposed posted within my earlier post.

Basically if it was written as a clause in the job contract that the money will be paid in full as lump sum after his retirement which only Renault and Ghosn will have privileged access to that information and the fact the money was not moved meaning it will not be written within the account books therefore will not raise any flags during audit. If this was not found at this point, it would have been a bomb when he retired showing a 50+ million dollar hole the year he retires which nobody in Nissan would have been able to explain resulting to a near riot rage during the stockholder's meeting of that year.

-2 ( +0 / -2 )

Nissan hang him out to dry...lots of Oyajis sitting around rubbing their hands...

2 ( +2 / -0 )

It seems prosecutors try to find out more wrongdoings besides the underreporting in case of less prospect of it. It is reported that Ghosn embezzled Nissan funds for personal purposes. If he did it, it will be misappropriation or embezzlement, so they would accuse him about these. It is just like hunters shoot many, sooner or later they get one.

0 ( +1 / -1 )

The board knew there are no way the board don't know, unless due to audit or accountant error ..Otherwise it is very unlikely the CEO can get renumeration under reporting without the knowledge of Board .This whole case look fishy .If the board and him are innocent which mean the firm that preparing the Nissan company account screw up .

2 ( +2 / -0 )

The man who saved Nissan hung out to dry by J inc so a native can fill the position, scared of Renaults 43% (controlling) share.

3 ( +3 / -0 )

N.H.K is one of my respected television channels. But N.H.K also knows how accounting is done in Japanese Language. No way, non Japanese can do this by himself. It is time to admit that Japanese good people failed in educating a foreign head of the business correctly. It is time to admit that top Japanese Staffs are involved in this especially the new President. Pls do not let these people escape. If these people escape, it will be a big price to pay for Nissan & it's share-holders.

1 ( +1 / -0 )

@UlsterBoy

Ghosn is probably the one guy with the thicker skin on Japan soil currently.

It will be interesting on how long the police will need to keep it under remand to crack him. They can extent it almost to the infinite as long as they can bring up new charges.

They will need a lot of police officers questioning him, many of them will crack well before him.

1 ( +2 / -1 )

I wonder how long Ghosn will endure the Notorious Japanese Police questioning before he declares himself Guilty of all charges and any others that they'd like to make up.

3 ( +4 / -1 )

@Kenji Fujimori

Police and the media/government work hand in hand to convict their detainees/prisoners without trial without a right of reply to their accusers.

Its a kangaroo court style of justice!

2 ( +3 / -1 )

Nissan / Japan are handling this awfully.

Im still not entirely sure why Ghosn is still being held in detention.

Also, based on the reasons given for his arrest, I cant understand how any other Nissan employees cant be implicated. It would be impossible.

3 ( +3 / -0 )

I would have thought that having special prosecutors that deal that case involving non-Japanese is un-constitutional in itself.

And I hope that the police do not go back their tricks of pushing the table into the defendants legs during interrogation.

1 ( +2 / -1 )

Unless he's pleading guilty of course he'll say that he's innocent. As for being on remand it's quite usual and it's up to the Judge to make that decision.

0 ( +0 / -0 )

Were he in politics, not only nr1 country to be sure, who would take offence?

0 ( +0 / -0 )

It’s nonsense to make blackboxes. If having confidence to get 20million per year, they should feel free to insist on it and write on the IR report.

0 ( +0 / -0 )

What did the "special investigation " team Nissan had going for months turn up?

My guess is that the "special investigation" team is a branch of the prosecutors office deals with foreign nationals dealing with Japanese interests.

(Normally such cases would be dealt with by fraud investigators)

There was once a system in Japan where the prosecutors office in Japan dealt with foreign nationals.

Did a judge issue a warrant for this arrest?

1 ( +1 / -0 )

As expected, each elapsed day show more to the world the notion of Japanese justice is medieval with shogun like system protected by powerless emperor decision maker.

Read history to learn.

0 ( +2 / -2 )

KaerimashitaToday  01:05 pm JST

Remiss of him not to ensure tat all of his tax and other financial affairs were in order. He must have some big shot accountant who does that for him.

According to Nikkei he haven't received the money yet but was written within a contract that he will receive the money as a lump sum compensation when he retired from Nissan. It looks as if the board was not informed of this clause and since the actual fund did not move so the audit did not find it on the books.

1 ( +2 / -1 )

Remiss of him not to ensure tat all of his tax and other financial affairs were in order.  He must have some big shot accountant who does that for him.

-1 ( +1 / -2 )

Renault owns 43% of Nissan. If Renault bought another 8% of Nissan stock they would be the majority shareholder and could force Nissan to do as they wish.

I am guessing that under Corporate law to gain a majority they would have to have a shareholder vote and pay considerably more than the current share price as it would be a takeover.

0 ( +1 / -1 )

NISSAN and MMC should immediately sever all ties with Renault,

Renault owns 43% of Nissan. If Renault bought another 8% of Nissan stock they would be the majority shareholder and could force Nissan to do as they wish. This is why weasels like Nishikawa will be proposing a massive Nissan share issue very soon in order to dilute Renault's holding.

3 ( +4 / -1 )

"Japanese prosecutors will also not be able to back down and MUST find something on Ghosn or be horribly humiliated." They know they can rely on the judges to find against him and save them embarrassment. Never mind that the entire country should be embarrassed...

10 ( +11 / -1 )

If he has not spoken publicly, where are these 'reporters' getting their sources from? Poltergeist??

1 ( +2 / -1 )

A good article a previous posted is spot on: https://jalopnik.com/was-carlos-ghosn-whacked-1830569053

5 ( +5 / -0 )

NHK said, without giving sources or further details.

Hang in there Carlos and David, come out lock stock and barrel, destroy Nissan and Saikawa

2 ( +2 / -0 )

This is not just a criminal matter, but also now a political one. If the Japanese justice system is seen being used as a weapon of economic nationalism against French shareholding in Nissan, then France will surely retaliate. However, Japanese prosecutors will also not be able to back down and MUST find something on Ghosn or be horribly humiliated. I guess in the end the judge will have to side with the prosecutors as they both are on the same payroll.

6 ( +6 / -0 )

I still think that the threat posed by Renault to Nissan's Japanese identity and the power wearing 2 hats gave Ghosn was seen as an existential threat by both company insiders, bureaucrats and politicians, and that tax malfeasance on a scale of this size would have come to the attention to the accounting dept at Nissan long before it could total $71 million dollars. He was set up to take a fall.

7 ( +7 / -0 )

If in fact it is about the deferred salary that he is being accused of "under" reporting, the tax folks within Nissan would also have had to been aware of the situation as well.

One question that has NOT been answered is who handled his taxes. Until we know THAT we will have a very difficult time being able to determine any culpability on his part.

4 ( +6 / -2 )

kwattToday  10:11 am JST

Ghosn' s remuneration is/was 20 billion yen on the Nissan official contract every year between 2011-2015. It means he has actually EARNED the 20 billion every year, but he decided to take the half 10 billion yen now every year from the company, He also decided to take the all rest (5 yrs x 10 billion yen) after his retirement, so he thought he did not have to report the 20 billion on the paper every year. He said this is not underreporting as he took 10 billion cash every year. As long as he was actually earning 20 billion every year, it seems it doesn't matter whether he gets 10 billion now or the rest later. He should have reported his remuneration 20 billion on the paper every year. It seems understatement.

Under TSE rules this was required to be noted on the annual report each which was not. Who ordered this and approved it, Ghosn himself basically since it was his salary that was not reported properly.

And no this is not some lump sum retirement money since board members are not employees who gains this kind of benefit under taxation law.

-2 ( +1 / -3 )

Ghosn' s remuneration is/was 20 billion yen on the Nissan official contract every year between 2011-2015. It means he has actually EARNED the 20 billion every year, but he decided to take the half 10 billion yen now every year from the company, He also decided to take the all rest (5 yrs x 10 billion yen) after his retirement, so he thought he did not have to report the 20 billion on the paper every year. He said this is not underreporting as he took 10 billion cash every year. As long as he was actually earning 20 billion every year, it seems it doesn't matter whether he gets 10 billion now or the rest later. He should have reported his remuneration 20 billion on the paper every year. It seems understatement.

-3 ( +0 / -3 )

So where did he get all that money?

Nissan!

7 ( +8 / -1 )

So where did he get all that money?

-3 ( +1 / -4 )

There is a chance NISSAN could still come back from this

Nope, Nissan are screwed now.

11 ( +13 / -2 )

Its becoming clearer each passing day that this was an internal hit job, sneak attack, a Pearl Harbour if you will!!

IF these two are guilty then the rest of upper management & board members for the most part have GOT to be guilty as well.

12 ( +15 / -3 )

Maybe that investigation will come later if he's found guilty?

No investigation will occur whether guilty or innocent. Japan Inc will continue as it always has

12 ( +13 / -1 )

Seems weird that he would break the laws related to the issuance of public securities but he does not seem to have broken any tax laws.

Who lies about their income and then pays taxes on it? Maybe that investigation will come later if he's found guilty?

5 ( +6 / -1 )

I'd like to see the charges in detail.

These days, celebrity superstar CEOs are all from the tech industry, but Ghosn is as big as they come, outside that world. He's been the chairman and CEO of three of the biggest automobile manufacturers in the world, simultaneously.

At his level, it is quite easy for the authorities to indict someone on a technicality, if they so wish, since the laws concerning transnational accounting and regulatory and fiduciary responsibility are so intricate.

On the other hand, by the standards of 2018, Ghosn, while being paid a multiple of what Japanese CEOs typically make, was paid only a fraction of what major Western CEOs make, and, of course, far, far less than the equity holding latter day tech industry CEO multi-billionaires.

10 ( +12 / -2 )

Here's a very interesting article by the guardian

https://www.theguardian.com/business/2018/nov/24/nissan-crisis-new-light-japan-inc-awkward-secrets-carlos-ghosn

I just want to point out a couple of paragraphs I found to be very interesting in the above link.

“Given the strict hierarchies in Japanese society, expecting individuals to blow the whistle on their peers – or, even worse, their seniors – is a cultural no-no,” Parsons says. “The consensus-driven and long-winded nature of Japanese decision making has in some cases led to a lack of willingness to be accountable and a tendency to avoid the consequences until forced.”

Michael Woodford understands that better than most. Seven years ago he was lauded by some as a champion of corporate transparency when, soon after becoming the first foreign chief executive of Olympus, he exposed systematic accounting fraud at the Japanese medical imaging company. His colleagues, however, viewed him with contempt – a pariah who in his role as chief whistleblower had breached Japan Inc’s code of silence.

24 ( +24 / -0 )

Shrewd businessmen always hide their true intentions.

Are you basing this comment on personal experience, and if not, what are you basing it on?

3 ( +6 / -3 )

@Yubaru: Indeed - however the wording in the article very much implies that he has chosen not to comment, which invites the reader to speculate as to why he hasn't done so.

It's not like he is going to be given the chance to state his case to the public while in custody. Even if he is given bail he will more than likely be stopped from commenting publicly as well by the investigators/prosecutors. The only information we MAY get will be from his lawyers!

11 ( +11 / -0 )

Shrewd businessmen always hide their true intentions.

Nissan's Saikawa certainly did.

19 ( +19 / -0 )

I've asked Japanese people why they voted LDP in an election. They answered "Because LDP usually wins the elections." These people seriously thought democracy was a horse race -- you pick who you think will win. Just like not understanding Democracy, Japanese don't understand what Justice is. The guilty party is not who you just assume it to be and then you scramble for evidence (or force a confession) to fit your assumption.

20 ( +22 / -2 )

Shrewd businessmen always hide their true intentions.

-5 ( +2 / -7 )

@Yubaru: Indeed - however the wording in the article very much implies that he has chosen not to comment, which invites the reader to speculate as to why he hasn't done so.

-3 ( +1 / -4 )

Banana republic justice.

17 ( +18 / -1 )

"Ghosn, who has not spoken publicly" is an interesting way of saying "Ghosn, who has been held for a week without charge and is completely unable to speak publicly whether he wants to or not"

Like it or not it's the system here, he will be held for quite a bit longer and if prosecutors increase any charges against him, they will also be given extra time for each charge to interrogate/question him.

He will be given the opportunity to apply for bail, but that's up to a judge to determine, whether or not he will be allowed to go free until the time there is a trial, IF there is one!

12 ( +13 / -1 )

"Ghosn, who has not spoken publicly" is an interesting way of saying "Ghosn, who has been held for a week without charge and is completely unable to speak publicly whether he wants to or not"

24 ( +24 / -0 )

it's a setup, they just wanted him out and now are free to put the successful Nissan back into bankruptcy

13 ( +16 / -3 )

Seems prosecutors will apply for extension on detention either in hope to break him down or give Nissan enough time to do whatever Saikawa is upto.

Not commenting if Ghosn is innocent or not but if he is all Nissan and prosecutors will be required to walk free is an apology with keywords like regrettable, deeply, ensure prevention and a 90 degrees bow.

10 ( +11 / -1 )

Ganbare - Your recommendation sounds like something I would expect to hear in China.

24 ( +25 / -1 )

Or should Mitsubishi and Renault sever ties with Nissan?

Kind of hard to do with way when they own stock in each other, and managed to be the leader in total automobile sales last year.

This is what burns the executives that hung Ghosen out to dry. They have little say in Renault, no voting rights, a smaller percentage of stock, and have to "allow" members of the Renault board on their "Japanese" company board!

If any of them cut their ties Mitsubishi and Nissan are going to have a hard time going forward!

14 ( +15 / -1 )

Ghosn will try to lie his way out of big jail time. He will hire expensive legal team and point the finger at Japanese executives to save himself. He will turn it into media circus. Sorry, Ghosn, accept the allegations and face up to it!

So, you have already tried and convicted him of "allegations"! If you ever are in the position of being accused of a crime, I hope you take your own advice, guilty or otherwise, and just accept the charges and face up to it!

That's why there is a system in place, while it may not be perfect, it's sure a hell of a lot better than just lining up "suspects" against a wall and shooting them!

17 ( +20 / -3 )

Looks like the prosecution jumped the gun, and as usual require a confession rather than having actual evidence. What did the "special investigation " team Nissan had going for months turn up? Was their word enough for an arrest? Is there proof or unsubstantiated whispers? An embarrassing turn of events for the injustice system.

18 ( +19 / -1 )

Nissan and Mitsubishi sever ties with Renault.

Or should Mitsubishi and Renault sever ties with Nissan?

19 ( +21 / -2 )

Ghosn will try to lie his way out of big jail time. He will hire expensive legal team and point the finger at Japanese executives to save himself. He will turn it into media circus. Sorry, Ghosn, accept the allegations and face up to it!

I agree with Schopenhauer, NISSAN and MMC should immediately sever all ties with Renault, nothing but trouble. There is a chance NISSAN could still come back from this, especially now that the Datsun brand has been launched in India.

-42 ( +3 / -45 )

So it sounds like there should be a trial to find out what really happened. Additionally the Nissan Board of Directors needs to be summoned to explain why (if these allegations are true) they did not do their job and notice this and then why this was brought up at this particular time.

Schopenhauer - Releasing him and deporting him with no financial damages would certainly be the best way for Nissan or Japan to cover up any other misdeeds or make sure that his "trial" is limited to being tried by the media and not in a court of law.

20 ( +21 / -1 )

Yeah well now it's going to be on the prosecutors and investigators to get evidence, and to ensure it's "real" evidence too.

There was a special on this story last night on NHK and while Nissan executives continue to deny it, everyone else is calling it a coup.

27 ( +29 / -2 )

Release Ghosn and send him back to France politely without giving him financial damages. Do not demand compensations. Nissan and Mitsubishi sever ties with Renault.

-13 ( +5 / -18 )

Who is the law? NISSAN or the justice system ?

What justice system?

25 ( +29 / -4 )

Japanese prosecutors say Ghosn and Kelly conspired to understate Ghosn's remuneration by about half the 10 billion yen ($88 million) he earned at Nissan over five years from 2010.

Would not have been possible without the complicity of entire departments in a company like Nissan.

28 ( +29 / -1 )

Who is the law? NISSAN or the justice system ?

If Japan government let this happen, I would not wish to come back and work for a Japanese company ever.

Please let justice prevails.

28 ( +31 / -3 )

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