In a shocking move, Nissan has announced that an internal investigation found its chairman and Renault’s CEO, Carlos Ghosn, to be involved in financial misconduct.
Casablanca – Nissan’s Representative Director Greg Kelly has also been involved in misconduct, the Japanese giant automobile manufacturer announced today.
The investigation, based on a whistleblower report, found 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.”
The improper disclosure, according to Nissan, represents “clear violations of the duty of care as directors.”
Nissan also accused Ghosn of other serious acts of misconduct, including “personal use of company assets.”
Following the scandal, the company announced that Nissan’s CEO Hiroto Saikawa will propose immediately ousting Ghosn and Kelly from their positions.
The case is under investigation in the Japanese Public Prosecutor’s Office.
Ghosn is also the CEO of the French automobile manufacturer Renault. The group has not yet made any official statement on the scandal. Renault has plants in Tangier and Casablanca.
During the meeting, Ghosn and Elalamy informed the King of an extension project to the Renault plant in Casablanca, to double its production to 160,000 vehicles per year by 2022.
The Moroccan Society of Automotive Construction (SOMACA) plant in Casablanca launched the extension project in October.
“In 2018, over 400 000 Renault and Dacia vehicles will come out of our two plants. Groupe Renault counts more than 11 000 employees in the country and over 40 suppliers and partners chose to follow us, creating 50 000 jobs locally,” Ghosn wrote in his LinkedIn on the same day of the royal reception.
Ghosn was simultaneously running two companies, Nissan and Renault, before he resigned as Nissan CEO in 2017.
Ghosn is considered a highly influential executive within the global automotive industry.