Nissan Chairman Carlos Ghosan arrested

Nissan Chairman Carlos Ghosan arrested

Strain in the alliance between Nissan and Renault have been laid bare by the publication of a letter from French carmaker’s lawyer accusing its Japanese partner of breaking international law in its enquiry into Calos Ghosan.

Nissan chairman Carlos Ghosan was arrested  on suspicious under reporting $44.6 million in pay.

Also arrested was Greg Kelley a representative director at Nissan on suspicion of conspiracy with Ghosan.

In 1999, French automaker Renault and the Japanese formed a strategic alliance. Ghosan 64, was then sent by Renault  to take over as Chief Operating Officer of Nissan.

Nissan CEO Hirota Saikawa critizised the concentration of too much power by a single individual,and offered an apology,” I feel strong anger and disappointment, I am very Sorry”  Saikawa told reporters at Nissan headquarters  in Japan.

“The investigation showed over many years both Ghosan Kelley have been reporting compensation amount in the Tokyo Stock Exchange Securities report that were less then the actual amount, in order to reduce the disclosed amount of Carlos Ghosan’s compensation”, the company said in the statement.

“Numerous other significant acts of have been uncovered, such as personal use of company assets.”

Analysts and legal experts say it will be difficult for Nissan and its chief executive Hirota Saikawa toavoid blame, regardless to whether other executive knew about Ghosan’s misconduct or that the company lack internal controls.

“It becomes difficult to overlook Saikawa’s role in all of this. That becomes the main focus now’ Prominent lawyer and former prosecuter Nobuo Gohara said.

Ghosan, if convicted, faces up to 10 years of prison ans/or 10 million yen in fines.

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