Ghosn may have transferred Renault funds to his investment firm

June 29, 2019

Tokyo--Former Nissan Motor Co. <7201> Chairman Carlos Ghosn may have secretly transferred 2.85 million euros from Renault SA, the French alliance partner of the major Japanese automaker, to a Lebanese investment firm effectively owned by him, it was learned Friday.

The special investigation team of the Tokyo District Public Prosecutors Office is aware of the questionable act and plans to prove this in his trial for suspected aggravated breach of trust over a similar transfer, involving Nissan money, to the investment firm, informed sources said.

Ghosn is believed to have used a similar method for the transfers of the Nissan and Renault funds, taking advantage of reserve funds he could use at his discretion when he was chief executive officer of the two firms.

Ghosn apparently discussed ways to transfer Renault funds with Suhail Bahwan Automobiles, a sales agent in Oman. They agreed on a plan for Ghosn to send money from Renault to SBA and for the sales agent then to transfer half of the amount to the Lebanese firm, Good Faith Investments, according to the sources.

In 2017, after the agreement was reached, a total of 5.7 million euros was sent from Renault to the Omani firm, and half of the money, or 2.85 million euros, went to GFI, later, the sources said.

The prosecutors office has indicted Ghosn for allegedly causing losses on Nissan by transferring a total of 10 million dollars from a Nissan subsidiary to SBA and redirecting half of the funds to GFI between 2017 and 2018.

Ghosn is denying the fund transfers, according to his defense team. Jiji Press