Mitsubishi alleges Ghosn received $8.9 mn in illegal payments

Mitsubishi alleges Ghosn received $8.9 mn in illegal payments

The logo of Mitsubishi Motors Corp is displayed at the company's showroom in Tokyo, Japan.

Nissan and Mitsubishi Motors say they may sue their former chairman Carlos Ghosn for improperly receiving compensation from the two companies' joint venture.

Ghosn, arrested and detained in Tokyo since November 19, has been indicted in Japan on charges of under-reporting his salary for 8 years through March 2018, and temporarily transferring personal investment losses to Nissan during the global financial crisis.

In November, Japanese vehicle maker Nissan, a Renault alliance partner, announced that Ghosn was arrested in Tokyo after an internal inquiry revealed his involvement in financial wrongdoings.

Kei Umebayashi, a lawyer who led the probe at Mitsubishi Motors, told reporters that testimonies during interviews with people concerned found that Ghosn created the venture for the goal of receiving remuneration illegally. Saikawa and Masuko reportedly not receive any compensation or other payments from NMBV.

The visiting French delegation is seeking an explanation from Nissan's management regarding its corporate governance in the wake of Ghosn's arrest, the Nikkei business daily reported, without citing sources.

Ghosn this week lost his bid for bail, and will have to cool his heels in a Tokyo jail until his trial begins, in March at the earliest, but possibly later.

The French state is Renault's biggest shareholder, owning a 15-per cent stake.

Nissan has confirmed that payments related to residences and other expenses such as a yacht club membership and donations to universities in Lebanon, Ghosn's ancestral homeland, had violated company procedures and its code of conduct, according to another person with knowledge of the issue.

His lawyers requested bail on January 11, but the court rejected it four days later saying he is a flight risk and that he may destroy evidence.

French carmaker Renault on Thursday launched the search for a successor to Chairman Carlos Ghosn, only hours after a Tokyo court quashed his appeal for bail as he faces three charges of financial misconduct.

He asserted his innocence in court last week, his first public appearance since the arrest. His lawyer, Motonari Otsuru, could not immediately be reached by telephone on Friday.

While the Japanese companies have ousted Ghosn, Renault has retained him as chairman and chief executive.

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