The head of Nissan will resign due to financial fraud

The head of Nissan will resign due to financial fraud

September 9, 2019 0 By autotimesnews

Hiroto Saikawa, chairman of Nissan’s board of directors, will step down after an internal investigation reveals that a senior manager was abusing his position and charging himself excessive fees. It is reported by Bloomberg.

The leadership of the Japanese automaker asked Saikawa to resign. Instead of Saikawa, who will leave his post on September 16, the position of the interim head of the board will be taken by the current managing director Yasuhiro Yamauchi.

In the course of the internal investigation, it turned out that Saikawa and a number of other high-ranking employees used the so-called “revaluation of shares” right, receiving additional funds from the overvalued market value of securities as a reward. Only Saikawa earned on fraud more than 90 million yen (830 thousand dollars).

The investigation was initiated when an ex-member of the board of directors Greg Kelly told in an interview with the Japanese magazine Bungei Shunju that in 2013 Saikawa illegally received an increase of 47 million yen (446 thousand dollars).

This is not the first scandal associated with the leadership of Nissan. Recall that in November 2018, the head of the Renault – Nissan – Mitsubishi alliance, Carlos Ghosn, who was suspected of tax evasion, was arrested. At the beginning of 2019, Ghosn announced that he linked his arrest by the Japanese authorities on charges of tax evasion with the “conspiracy and treason” of top managers of Nissan.

According to Gon, Nissan’s top management opposed his initiative to further deepen the merger of the three partner companies. The issue of uniting automakers into one holding company was discussed with Nissan President Hiroto Saikawa, who, in turn, refused to include Osama Masuko, the head of Mitsubishi Motors, in the discussion.

Companions of Carlos Ghosn claim that some Nissan top executives feared that Ghosn would gain excessive power if the three companies merged, and compared his leadership with the “dictatorship”. This forced them to cooperate with the Japanese authorities, who subsequently charged with tax evasion and financial fraud.