The head of Nissan was caught in financial fraudSeptember 7, 2019
Prior to this, he accused of concealing income and misuse of funds of Carlos Ghosn
Nissan’s audit committee conducted an internal investigation and found that the head of the company, Hiroto Saikawa in 2013, received an overpriced reward. A top manager abused a stock-linked payout program developed with the participation of Carlos Ghosn.
The investigation revealed that Saikawa and a number of senior Nissan employees took advantage of the loophole in the company’s internal procedures to get additional rewards. The scheme was invented during the “era of Ghosn” and allowed the current leadership to “earn” tens of millions of yen.
Immediately after the detention of Carlos Ghosn, Tokyo District Attorney Hiroto Saikawa announced that he would require the board of directors to resign him immediately. The current head of Nissan sharply criticized the former chairman of the alliance and accused him of using the company’s assets for personal purposes.
Saikawa admitted to violating the law, apologized and promised to return all illegally received funds. At the same time, in one interview, he said that he received rewards by mistake, and in another that he did not directly participate in the implementation of the fraudulent scheme, and all payments were made in strict accordance with corporate standards.
The investigation was initiated after a former Nissan board member, Greg Kelly, told Japanese magazine Bungei Shunju how, in 2013, management exceptionally moved the implementation date of the so-called “revaluation rights” to a predetermined one, which allowed Saikawa to earn an additional 47 million yen. According to Kelly’s lawyer, Saikawa himself asked for this in order to buy property in Tokyo.
Now the fate of the top manager will be decided by the Nissan Disciplinary Committee. At the same time, the scandal with an overestimation of the amount of remuneration can undermine the position of Saikawa as the company’s general director.
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