Ghosn rejects allegations in his first court hearing

Bloomberg

Former Nissan Motor Co Chairman Carlos Ghosn rejected prosecutors’ claims of financial wrongdoing and pledged his loyalty to the company he led for more than a decade, as the fallen car titan faces an extended detention following his shock arrest in Japan almost two months ago.
“I have been wrongly accused and unfairly detained based on meritless and unsubstantiated accusations,” said Ghosn, who arrived gaunt, handcuffed and with a rope around his waist in a Tokyo court room, his first public appearance since he was detained on November 19. Ghosn’s lawyers said later they plan to appeal his incarceration and will apply for bail if he is indicted on January 11, the end of the current detention period.
Looking thinner and with sunken cheeks, the dark-suited Ghosn laid out in detail his defense against charges he failed to disclose income from Nissan and passed on trading losses to the carmaker. He told the court that contrary to accusations made by prosecutors, he got no compensation from Nissan that wasn’t disclosed.
Ghosn has been indicted in Japan for under-reporting his compensation and the hearing on Tuesday was requested by his lawyers, seeking an explanation for why he has been detained for so long. According to his defense team, he faces the prospect of not getting bail until a trial begins, which might take six months, meaning Ghosn would spend far longer in detention than the 50 days he’s already been locked away.
“I have acted honourably, legally and with the knowledge and approval of the appropriate executives inside the company,” Ghosn said. “Your Honor, I am innocent of the accusations made against me.” A statement of the remarks he made in court was provided to Bloomberg News.
Once feted as Nissan’s savior, Ghosn presented a pale imitation of his old self. The charges are related to a relatively arcane point of accounting — whether retirement payments were properly booked. Ghosn said draft proposals for his post-retirement compensation were reviewed by internal and external lawyers at Nissan, showing he had no intention of breaking the law. Another allegation is that Ghosn transferred obligations on his own personal investment losses to Nissan. In his defense, he said he had asked Nissan to take on collateral linked to foreign-exchange forward contracts “as it came to no cost to the company.” The contracts, which were transferred back to him without the carmaker incurring any loss, were struck because the company paid him in yen while he preferred income in US dollars. The executive said he always acted with integrity and has never been accused of any wrongdoing in his professional career.
After weeks in jail, the executive’s public defense was highly anticipated: A whopping 1,122 tickets were handed out on Tuesday in a lottery to attend Ghosn’s hearing — about
80 times oversubscribed — for the 14 public seats available in the courtroom gallery.
New Dimension
His appearance in court lends a new dimension to a legal battle that has been largely one-sided. Accusations against him have layered up and his confinement has repeatedly been extended. He was re-arrested on fresh charges on December 21, just when it looked like he may be able to apply for bail.
Judge Yuichi Tada said that Ghosn, as someone with multiple bases overseas, is being held because there’s a risk he’ll leave the country and tamper with evidence. Ghosn’s legal team argued there’s no chance of that, partly because he’s well known as the Renault boss.
While he was dismissed as Nissan chairman after his detention, Renault has kept him on as chairman and chief executive officer because it needs evidence of wrongdoing. French Labor Minister Muriel Penicaud said in a CNews interview that presumption of innocence must be respected and Ghosn remains the head of Renault.