Japanese automaker Nissan’s head, Carlos Ghosn has been arrested over financial misconduct. He is also the head of association between Renault, Nissan and Mitsubishi. Carlos is one of the towering figures of the industry and he has been accused of significant act of misconducts. Carlos is accused of under reporting his salary by millions of dollars, and used company assets for personal use. Based on unclaimed reports, it is speculated that Carlos Ghosn seemed to have under-reported amount totaling to 5bn yen between the period of 2011 and 2018.
Nissan refused to disclose any details regarding the offence. Chief Executive of the company revealed that he will be sacked after Thursday’s board meeting. Another board member, Greg Kelly whose position is Representative Director was also deeply involved will get the boot. All these rumors surfaced after Nissan disclosed that they have been conducting internal investigation on whistleblower report. From the year 2010, Japanese firms are required to disclose salaries of the executive who earn more than 100m yen.
In a press release, Nissan said that they are proving all information to the Japanese Public Prosecutors Office and are also fully cooperating with their own investigation. It further stated that following clear violations of the duty as directors, Nissan’s CEO Hiroto Saikawa will be proposing Board of Directors to promptly remove Carlos Ghosn from the post as Chairman and Representative Director. Nissan deeply regrets cause of concern for shareholders and stakeholders caused by these unforeseen events. Nissan will work to identify governance and compliance issue and will take appropriate measures.