Japanese automaker Nissan has been hit with fresh challenges after the company’s chairman was taken into questioning on Monday for alleged fraud.<\/b>
\nTokyo authorities have apprehended Nissan Motor Co. chairman and CEO Carlos Ghosn after suspicions he failed to report hundreds of millions of yen from his salary, the Tokyo District Public Prosecutors Office said.
Authorities investigated Ghosn’s potential violations against the Financial Instruments and Exchange Law based on falsely reporting figures on company financial statements, and are ready to arrest the CEO after interrogation, sources said according to the Asahi Shinbun.
Nissan hired Ghosn as chief operating officer in 1999 after working with French automaker Renault SA. He became president and CEO in 2001 and was charged with redeveloping the company afterwards.
Ghosn also oversees the UK’s largest automotive plant in Sunderland, which employs 8,000 workers and liaisons with 30,000 British suppliers for Nissan, and has advocated frictionless trade amid Brexit uncertainties as more than half the plant’s production is exported to the EU.
A spokesperson from Nissan Motor Co. said that Both Ghosn and company director Greg Kelly had been investigated internally for several months, revealing that both were underreporting compensation amounts on the Tokyo Stock Exchange securities report \u00ab\u00a0in order to reduce the disclosed amount of Carlos Ghosn’s compensation,\u00a0\u00bb a company statement said.
Regarding Ghosn, \u00ab\u00a0numerous other significant acts of misconduct have been uncovered, such as personal use of company assets, and Kelly’s deep involvement has also been confirmed.\u00a0\u00bb
Nissan also confirmed it was \u00ab\u00a0fully cooperating with\u00a0\u00bb the Japanese Public Prosecutors Office, adding that Nissan CEO Hiroto Saikawa will urge the Board of Directors to \u00ab\u00a0promptly remove Ghosn from his positions as Chairman and Representative Director\u00a0\u00bb as well as Greg Kelly from his director post.
\u00ab\u00a0Nissan deeply apologizes for causing great concern to our shareholders and stakeholders,\u00a0\u00bb the statement continued. \u00ab\u00a0We will continue our work to identify our governance and compliance issues, and to take appropriate measures.\u00a0\u00bb<\/p>\n

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