Nissan‘s former chair Carlos Ghosn has denied allegations that he used company funds to pay for his luxury lifestyle, claiming he had no intention of making false financial statements.
The Brazil-born tycoon, who has not spoken publicly since he was arrested last Monday, told prosecutors he did not intend to understate his income on financial reports, according to Japanese public broadcaster NHK.
Ghosn, who was sacked as Nissan chairman last Thursday, is at the centre of a corruption investigation that has stunned the business world and put in doubt one of the most successful car alliances of the last 20 years.
The scandal is also being viewed increasingly as a battle between Nissan and Renault, the French car company that Ghosn also runs and which has a controlling share in the Japanese carmaker.
Prosecutors accuse Ghosn and fellow executive Greg Kelly of underreporting the former chairman’s income by around 5bn yen ($44m).
Kelly also denied the allegations, saying Ghosn’s salaries were paid appropriately, news reports said.
Local media reported that Nissan had formed a secret team earlier this year to probe the alleged financial misconduct.
A small team involving Nissan‘s board members carried out its internal investigation confidentially on concerns about possible destruction of evidence by Ghosn, Japan’s Kyodo News reported, quoting unnamed sources.
Ghosn is being held custody in a Tokyo detention centre, which prosecutors hope to extend beyond Wednesday to continue their questioning.
Meanwhile Renault-Nissan executives are understood to be preparing to shield their joint operations from a looming power struggle between the carmakers. Top executives from both manufacturers and third partner Mitsubishi will attend mid-week operations committee meetings in Amsterdam that had been planned before Ghosn’s detention in Japan.
“There is no change in our alliance relationship,” a Mitsubishi spokesman said.
While Nissan and 43.4% owner Renault have vowed to safeguard the partnership, the Japanese carmaker’s chief executive Hiroto Saikawa also made clear he wants to end its French parent’s control of the alliance.
Renault has refrained from dismissing Ghosn as chair and CEO, while demanding that Nissan share its findings from the months-long internal investigation that led to his arrest.
The French finance minister, Bruno Le Maire, said the Paris government and Renault had yet to see evidence to support Nissan’s allegations of wrongdoing.
“We still have no information on the reproaches against Carlos Ghosn and on the charges that Nissan transmitted to the Japanese justice. I hope we can have these elements rapidly,” Le Maire said.
Le Maire reiterated France and Japan were keen to pursue the strengthening of the alliance between the two carmakers.
“The alliance is in the interest of Japanese and French and I wish for a strengthening of the alliance that would respect existing cross-shareholding,” he added.
