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Ghosn faces re-arrest but law consultants say there was no wrongdoing

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Carlos Ghosn
Asia   Carlos Ghosn

Tokyo prosecutors plan to arrest Carlos Ghosn on a fresh claim of understating his income, the Sankei newspaper reported.

Ghosn has been detained in Tokyo since his Nov 19 arrest on suspicion of conspiring with former Nissan representative director Greg Kelly to understate his compensation by about half of the actual 10 billion yen (S$121 million), over five years from 2010.

Tokyo authorities last Friday extended their detention until Dec 10, the furthest allowable, for the alleged crime.

Citing unnamed sources, the Sankei daily said prosecutors plan to arrest Mr Ghosn and Mr Kelly on Dec 10 for the same crime covering 2015 to 2017, when the suspects allegedly understated Mr Ghosn's income by about four billion yen.

If the authorities approve the maximum detention for that case, the two would remain in custody until Dec 30, Sankei said.

A former Nissan Motor Co. executive said the company was told by outside experts that it was not necessary to disclose planned post-retirement payments to former chairman Carlos Ghosn, sources said.

Greg Kelly, 62, a former representative director, also named the offices of lawyers and accountants contacted by the secretary's office for Ghosn, 64, the sources said.

Kelly’s statement highlights the conflict between the two former Nissan executives and the Special Investigation Department of the Tokyo District Public Prosecutors Office over the legality of the post-retirement payments.

Kelly also said that at his behest, the secretary’s office for Ghosn asked a law office and an accountant office about possible legal problems with the post-retirement payments.

He said the secretary's office confirmed that there was no obligation to disclose the payments because they did not constitute remuneration for work Ghosn had done during the period.

Kelly emphasized that the confirmation was made by Nissan.

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