Sections

ideals
Business Essentials for Professionals

Renault To Apprise Prosecutors Over Suspected Spending At Ex-CEO Ghosn's Wedding


02/07/2019


Renault To Apprise Prosecutors Over Suspected Spending At Ex-CEO Ghosn's Wedding
The French car maker Renault has said that it is conducting an investigation into the possibility of a personal gain for its scandal-hit former chairman Carlos Ghosn top the tune of about 50,000 euro ($57,000) arising from a sponsorship deal that he had struck with the Chateau de Versailles.
 
The matter was earlier reported in Le Figaro and this was later confirmed by the car maker. The French company also said that it would also be informing the prosecutors about the issue. According to the report published in the French daily. The rent on behalf of Ghosn for the Grand Trianon palace, which was hired for the former executive’s marriage in 2016, was also paid for as a part of Renault’s sponsorship of Versailles renovations.
 
Ghosn was removed as the chairman and chief executive of Renault last two months after he was arrested in Japan on November 18 of 2018 over charges of financial misconduct after being reported by Nissan - the Japanese car maker in which Renault has a 43.4 per cent stake. Ghosn has been in detention in Japan since.  He was also removed as chairman of Nissan soon after his arrest.
 
Following the arrest, the French car manufacturer is also conducting an internal investigation about the payment that the company had made to Ghosn. The company however has not yet raised in concerns over financial irregularities surrounding Ghosn’s pay.
 
Renault said on Thursday that the investigation has “identified that Mr Ghosn was accorded a personal benefit valued at 50,000 euros under the terms of a sponsorship contract with the Chateau de Versailles.” The company added: “Renault has decided to bring these findings to the attention of the judicial authorities.”
 
Ghosn has not been able to respond to any of the allegations in person since his arrest except for an interview he was allowed to give to a Japanese news paper. 
 
The huge spending, opulence and grandeur that was seen, apparent by the Marie Antoinette-themed costumes, at Ghosn’s wedding reception on October 8, 2016 at the Grand Trianon palace had raised eyebrows among the public and the media alike. That was Ghosn’s second marriage. 
 
According to reports published in the media, following the newspaper report about the possibility of illicit funding of Ghosn’s marriage reception, the ethics committee of the Renault board was informed of the revelations made by the company this Wednesday.
 
(Source:www.bloomberg.com)