Nissan, in a recent press conference, said its Chairman Carlos Ghosn has been placed under arrest after he allegedly violated Japanese financial law. The auto giant said in an earlier statement on Monday that “over many years” Ghosn and board director, Greg Kelly, had been under-reporting compensation amounts to the Tokyo Stock Exchange (TSE/TYO) securities report.
The company further added that, in regards to Ghosn, numerous other significant acts of misconduct have been exposed, such as personal use of company assets, and inappropriate investments.
Nissan’s Chief Executive Hiroto Saikawa, who mentioned both Ghosn and Kelly’s arrest in a press conference on Monday, is to propose to the Nissan Board of Directors to completely remove them from their respective roles, this Thursday. The chief executive also revealed that a whistle-blower had passed information to Nissan’s auditors who then began an elaborate and wider investigation. The evidence collected was then passed to Japan’s public prosecutor.
Saikawa said both Ghosn and Kelly clearly “masterminded” the allegations of misconduct but declined to say how many more people could be involved in this. He said that due to the complete secrecy of the operation, most other top executives at the firm had only learned of Ghosn’s wrongdoing in the last few hours and only a counted few people knew about the investigation.
Facing the press alone, the chief executive said that he felt the mistake had come by allowing the concentration of power in one individual alone. Saikawa, who said the misconduct went on for “a long period”, told that Kelly had been allowed to take control of internal operations, as he had the direct backing and support of Ghosn.
Born in Brazil, Ghosn became the world’s first person to ever run two companies on the Fortune Global 500 simultaneously when he assumed the CEO roles at both Nissan and Renault in 2005. He stepped down as Nissan CEO in 2017.