Nissan chairman arrested over financial violation

Based on a whistleblower report, Nissan Motor conducted an internal investigation over the past several months regarding misconduct involving the company's representative director and chairman Garlos Ghosn and representative director Greg Kelly. According to reports in the media, Ghosn has been arrested and is said to have under-reported his income by 5bn yen over five years and used company assets for personal purposes.

The investigation showed that over many years both Ghosn and Kelly have been reporting compensation amounts in the Tokyo Stock Exchange securities report that were less than the actual amount, in order to reduce the disclosed amount of Carlos Ghosn's compensation.

“As the misconduct, uncovered through our internal investigation constitutes clear violations of the duty of care as directors, Nissan's CEO Hiroto Saikawa will propose to the Nissan board of directors to promptly remove Ghosn from his positions as chairman and representative director. Saikawa will also propose the removal of Greg Kelly from his position as representative director,” said the brand.

Nissan added that, in regards to Ghosn, numerous other significant acts of misconduct have been uncovered, such as personal use of company assets, and Kelly's deep involvement has also been confirmed.  The brand also apologised “for causing great concern” to shareholders and stakeholders. “We will continue our work to identify our governance and compliance issues, and to take appropriate measures,” the statement read

“Nissan has been providing information to the Japanese public prosecutors office and has been fully cooperating with their investigation. We will continue to do so.”