Nissan head Carlos Ghosn arrested for fraud, faces removal

Chairman of Nissan Motor Carlos Ghosn, above, was arrested on Monday by Tokyo prosecutors for alleged financial violations and set to be sacked by the automaker, local reports said.

Nissan headquarters was also raided on Monday.

The arrest follows charges by Nissan that Ghosn misused company funds along with representative director Greg Kelly.

Both of them were facing months-long internal inquiry over under-reporting Ghosn’s income in the Tokyo Stock Exchange securities report for years. Ghosn served the company for nearly two decades.

Nissan provided Ghosn’s income details to the Japanese Public Prosecutors Office and he was questioned by officials.

Ghosn was responsible for the alliance of Renault, Nissan Motor and Mitsubishi Motors. He also served as CEO of France’s automaker and as head of the triple alliance. For the Brazilian-born Ghosn, this was a rare top job in Japan.

But there were controversies linked to his pay. In 2016, shareholders voted against his pay package.

His contract was renewed with Paris backing but the new contract he entered into up to 2022 saw a 30% pay cut.

Nissan CEO Hiroto Saikawa told a news conference  on Monday night that the company is working to ensure that there will be no impact on the three companies’ partnership.

Mitsubishi Motors is planning to remove Ghosn as chairman while Renault is expected to hold a meeting to discuss his fate.