Ex-Nissan chair Ghosn indicted for alleged breach of trust

Carlos Ghosn has denied all the allegations against him. (File/AFP)
Updated 11 January 2019

Ex-Nissan chair Ghosn indicted for alleged breach of trust

  • Ghosn was detained on Nov. 19. Earlier, he was charged with falsifying financial reports in underreporting his income
  • Ghosn’s lawyer said he would request Ghosn be granted release on bail

TOKYO: Nissan’s ex-chairman Carlos Ghosn was charged Friday with breach of trust in the latest blow for the star executive, according to the Tokyo District Court.
Ghosn was detained on Nov. 19. Earlier, he was charged with falsifying financial reports in underreporting his income by about 5 billion yen ($44 million) over five years through 2015.
Ghosn; Greg Kelly, another Nissan executive; and Nissan as a legal entity were charged Friday with additional underreporting of income, from 2015 through fiscal 2017.
Ghosn’s lawyer said he would request Ghosn be granted release on bail. His detention period for the breach of trust allegations was due to expire Friday.
Kelly and Nissan were not charged with breach of trust. Those allegations center on Ghosn’s handling of investment losses and payments made to a Saudi businessman.
Ghosn, 64, says he’s innocent.
Suspects in Japan are routinely held for months until trials start.
Tokyo prosecutors say Ghosn, a Brazilian-born Frenchman of Lebanese ancestry, is a flight risk.
Earlier this week Ghosn told a Tokyo court he was innocent, in his first public appearance since his arrest, and appealed for his detention to end. But the court rejected the request.
“I have a genuine love and appreciation for Nissan,” Ghosn told the court. “In all of my efforts on behalf of the company, I have acted honorably, legally and with the knowledge and approval of the appropriate executives inside the company.”
He said the compensation was never decided on, the investment deal never resulted in any losses to Nissan, and the payments to the Saudi businessman was for legitimate services related to dealers and investments in the Gulf.
Ghosn, who appeared much thinner than before his arrest, came down with a fever the day after his court appearance, but has since recovered, his lawyer Motonari Ohtsuru said.
His wife Carole Ghosn issued a statement overnight out of Paris, expressing concern over his sickness.
“I am pleading with the Japanese authorities to provide us with any information at all about my husband’s health. We are fearful and very worried his recovery will be complicated while he continues to endure such harsh conditions and unfair treatment,” she said.
Apart from prosecutors, only embassy officials and Ghosn’s lawyers are allowed to visit him. Such visits were canceled Thursday but resumed Friday.
Before his sudden downfall, Ghosn was a respected figure in the global auto industry, having rescued the Japanese automaker from near-bankruptcy, building its sales operations and profits and pioneering ecological vehicles.
Nissan says an internal investigation began middle of last year after whistleblowers came forward. Nissan Chief Executive Hiroto Saikawa has denounced Ghosn, accusing him of using company money and assets for personal gain.
Ethics officials at Nissan’s alliance partner Renault SA of France concluded this week that financial compensation to members of the French automaker’s executive committee in 2017 and 2018 was fraud-free. The review was initiated after Ghosn was arrested. Ghosn remains CEO of Renault.


Apple faces shareholder vote over Chinese app removal policies

Updated 26 February 2020

Apple faces shareholder vote over Chinese app removal policies

  • The apps allow users to bypass China’s so-called “Great Firewall” aimed at restricting access to overseas sites
  • Apple shareholders have voted down human rights measures related to China in the past

Apple Inc’s shareholders on Wednesday will vote on a proposal critical of its moves to remove apps at the request of the Chinese government and calling on the iPhone maker to report whether it has “publicly committed to respect freedom of expression as a human right.”
The proposal is one of six that will face a vote at the company’s annual shareholder meeting at Apple’s headquarters in Cupertino, California.
The shareholder proposal on freedom of expression focuses on Apple’s 2017 removal of virtual private network apps from its App Store in China. Such apps allow users to bypass China’s so-called “Great Firewall” aimed at restricting access to overseas sites.
Apple opposes the proposal, saying it already provides extensive information about when it takes down apps at the request of governments around the world and that it follows the laws in countries where it operates.
” hile we may disagree with certain decisions at times, we do not believe it would be in the best interests of our users to simply abandon markets, which would leave consumers with fewer choices and fewer privacy protections,” Apple said in its opposition.
Proxy advisory firms Glass Lewis and Institutional Shareholder Services both recommend votes in favor the measure, according to reports from them seen by Reuters.
Apple shareholders have voted down human rights measures related to China in the past. They defeated a 2018 proposal that urged Apple to create a human rights panel to oversee issues such as workplace conditions and censorship in China, with 94.4 percent of shareholders voting against it.
Shareholders will also vote on a proposal to allow shareholders to nominate more than one director to Apple’s board and whether to tie executive compensation to environmental sustainability metrics. Apple opposes both proposals.