Nissan's Ghosn to be arrested in Japan for alleged financial violations

Greg Kelly joined the Nissan board in 2012. Pic Nissan Motor Co

Greg Kelly joined the Nissan board in 2012. Pic Nissan Motor Co

Nissan Motor Co Ltd said on Monday it was moving to terminate Carlos Ghosn from his chairman's post after finding that he had used company money for personal use and committed several other serious acts of misconduct.

Nissan said the misconduct, which involved both Ghosn and Greg Kelly, the firm's representative director, came to light following a whistleblower report, prompting an internal investigation that the firm says has been ongoing for several months.

Hiroto Saikawa, the chief executive and only remaining survivor of the firm's top three executives, will propose to the board that Ghosn and Kelly be dismissed, citing "clear violations of the duty of care as directors".

Prosecutors were prepared to arrest Ghosn, 64, after further questioning, the sources said.

Public broadcaster NHK and Kyodo News also reported that Ghosn, who doubles as chairman and chief executive of France's Renault (RENA.PA), was to be arrested.

The Asahi newspaper reported on its website that prosecutors had begun searching the offices of Nissan's headquarters and other locations on Monday evening. Mr Ghosn had already begun shedding some of his responsibilities - he stepped down as chief executive of Nissan a year ago, and recently offloaded some day to day responsibilities at Renault as well.

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Nissan said it would brief reporters on Monday evening.

"Nissan has been providing information to the Japanese Public Prosecutors Office and has been fully cooperating with their investigation".

In addition, he is chairman and chief executive of the Renault-Nissan-Mitsubishi Motors strategic alliance.

Nissan's German-listed securities plunged 12 percent.

The alliance sold 5.54 million vehicles worldwide in the first six months, up 5 percent from the same period past year, according to data from the three companies.

In June, Renault shareholders approved Ghosn's 7.4 million euro ($8.45 million) compensation for 2017.

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