EXCLUSIVE: Ghosn may have avoided electronic approval for CEO expenses

January 15, 2019

Tokyo--Former Nissan Motor Co. <7201> Chairman Carlos Ghosn may have avoided using an electronic approval system for expenses from the so-called CEO reserves at the automaker, Jiji Press has learned.

Ghosn is believed to have sent a total of 14.7 million dollars in Nissan funds to a corporate bank account of Saudi businessman Khaled Al-Juffali for his assistance in operations to transfer Ghosn's financial derivatives contracts with appraisal losses between Nissan and Ghosn's asset management company.

Ghosn got the money transferred to the Saudi man after obtaining Nissan approval in documents instead of using the electronic approval system, which is usually used for corporate expenses at the automaker, informed sources said.

It is believed to be more difficult for auditors to monitor how funds are used if they are approved in documents than through the electronics system, the sources added.

The CEO reserves were created by Ghosn in late 2008 when he was Nissan chief executive officer. They were managed by the CEO office.

Ghosn is suspected of sending 32 million dollars to an Omani sales agency and 15.6 million dollars to a Lebanese sales agency from the CEO reserves, and part of the funds seem to have returned to Ghosn via a shell company, the sources said.

Ghosn, 64, has been indicted for violating the securities law by underreporting his executive pay at Nissan and for charges of aggravated breach of trust.

He has been detained in Tokyo since his arrest on Nov. 19 last year. Jiji Press