Report Finds That Too Much Power Was Concentrated In Former Nissan Chief Ghosn

The former disdained chairmen of Nissan Motor Corp – Carlos Ghosn was given too much authority, claims the outcome of an external report comprising of a panel of experts.

The aim of setting up the panel by the company was to find out ways to enhance the corporate governance and management at the Japanese auto giant.

The report from the panel claimed to have uncovered a “concentration of all authority” in the former Nissan chairman.

Ghosn spent a long time in Japanese jail since he was arrested on November 19 last year at the behest of Nissan over charges of financial misconduct at the company and for underreporting his pay package in filing at the Tokyo Stock Exchange for a period of five years starting from 2010 till 2015. He was also charged with using the company funds to cover his personal financial losses.

All the allegations have been vehemently repeatedly denied by Ghosn.

Ghosn has, on his part, alleged that his arrest was an outcome of a “plot and treason” against him which he described as an effort by a section of executives at Nissan to prevent his plans of integrating the three alliance companies – Renault, Nissan and Mitsubishi.

The panel of outside experts have however also confirmed that Ghosn wa snot interviewed while preparing the report.

The report however also concluded that so much had been concentrated in Ghosn by himself and in his office that any and all of the other departments that were designated to create a system of check and balances “did not necessarily function effectively”.

After his initial detention in November last year, additional charges were brought against Ghosn in January this year. Following being behind bars for more than three months, Ghosn was ultimately granted bail and released from prison earlier this month.

The court had however also imposed very strict conditions to his bail which includes Ghosn being under video surveillance and the limited use of his mobile phone and e-mailing and conditions of not getting in touch a-with any individual associated with this case except for his lawyer. . the court also strictly restricted his access to his computer except at the office of his lawyer during weekday and during daytime hours.

According to Japanese regulators, Ghosn could face up to 10 years in prison as well as a fine of up to 700 million yen if the charges of financial misconduct brought against him were found to be true.

Apart from staging a dramatic turnaround of Nissan from the verge of bankruptcy, Ghosn is also credited to be the architect of the alliance between Nissan and French carmaker Renault, and after he managed to bring Mitsubishi on board in 2016, the alliance became the largest in the auto world. Till such time that he was arrested Ghosh served as the chief executive who ran the alliance of the three global carmakers as well as the chief executive and chairman of the companies.

His status was such that his life was serialised in a Japanese comic book.

(Adapted from BBC.com)

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Categories: Economy & Finance, Regulations & Legal, Strategy, Sustainability, Uncategorized

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