Ghosn detention extended over Christmas and New Year

Former Nissan boss Carlos Ghosn will be spending Christmas and the beginning of 2019 behind bars after a Tokyo court yesterday extended his detention through to January 1. The court’s decision is the latest twist in a rollercoaster saga that has gripped Japan and the business world since the auto sector titan was arrested out of the blue in Tokyo on November 19. “Today, a decision was made to detain (Ghosn).

The full term of the detention will expire on January 1,” the Tokyo District Court said in a statement to media. This does not however mean that Ghosn can expect to taste freedom on New Year’s Day, as prosecutors can apply for a further 10-day extension as they quiz him on allegations of financial misconduct. Authorities are pursuing three separate lines of enquiry against the 64-year-old Franco-Lebanese-Brazilian executive.

They suspect he conspired with his right-hand man, US executive Greg Kelly, to hide away around half of his income (some five billion yen or $44 million) over five fiscal years from 2010. They also allege he under-reported his salary to the tune of four billion yen over the next three fiscal years -- apparently to avoid criticism that his pay was too high. The third allegation is that he shifted a personal investment loss made at the height of the financial crisis worth more than $16 million to the Japanese automaker.

Prosecutors have pressed formal charges over the first allegation but not yet over the other accusations. Ghosn’s case has seen several twists and turns since his stunning arrest on the night of November 19 as his private jet touched down at Tokyo’s Haneda Airport. On Thursday, observers were caught wrong-footed as court threw out a request from prosecutors to extend his detention over second set of allegations (under-reporting his salary between 2015 and 2018) in an almost unheard-of move.