Nissan scandal involving the under-reporting of 5 billion yen in income: Ghosn and greed

Nissan scandal involving the under-reporting of 5 billion yen in income: Ghosn and greed

Noriko Watanabe and Lee Jay Walker

Modern Tokyo Times

 

The Chairman of Nissan Motor Co., Carlos Ghosn, is being investigated for the alleged underreporting of some 5 billion yen in income over a period of five years. If the Tokyo Public Prosecutors Office validates the investigation, then it is most likely the tip of the iceberg.

It is widely believed that Ghosn violated the Financial Instruments and Exchange Law. Hence, if the evidence is overwhelming, then he will become yet another major business individual who became besotted by corporate greed. However, for Nissan, it may amount to a fresh start because no single individual should hold so much sway over a major corporation.

The damning words of Hiroto Saikawa, the Chief Executive of Nissan, seems to confirm that the discrepancy of corporate malpractice was massively abused by Ghosn. Saikawa states, “I feel despair, indignation and resentment.”

He further uttered, “As the details are disclosed I believe that people will feel the same way as I feel today.”

Indeed, initial reports claim that the malpractice of Ghosn doesn’t solely relate to the underreporting of 5 billion yen, but also about the abuse of assets owned by the company. It is most likely that more glaring discrepancies will come to light and other individuals will be included in the scam. For example, it is known that Greg Kelly, a Senior Director, is also being investigated for malpractice.

The BBC reports, “According to Japanese media reports, which have not been confirmed, he under-reported an amount totaling 5bn yen ($44m; £34m) over a five-year period from 2011.” 

It is hoped that Renault and Mitsubishi Motors will also investigate the business ways of Ghosn. After all, he is a Chairman and Chief Executive of the strategic motor alliance of Renault-Nissan-Mitsubishi Motors.

Corporate greed is a serious issue for countless companies. Hence, when proven beyond any serious doubt, the ultimate price should be paid in relation to the crime that was committed.

https://www.bbc.com/news/business-46259420

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