Nissan has laid out sweeping allegations against Carlos Ghosn, blasting the “personality cult” surrounding the ousted chief and the corporate culture in which he was “deified within Nissan as a savior.”
In a blistering attack on the former auto executive, a 34-page report released by the Japanese carmaker’s governance committee on Wednesday described an environment in which Ghosn cultivated loyalists and ensured his wishes were rarely defied.
Ghosn is one of the most prominent figures in the global auto industry. He is awaiting trial on charges that he abused his position by transferring personal investment losses to Nissan (NSANF) and that he collaborated with close associate Greg Kelly to under-report his compensation.
In its report, Nissan’s newly-formed governance committee blamed poor oversight of Ghosn and Kelly for the alleged criminal misconduct. Both men deny any wrongdoing.
Ghosn enforced an ‘unjust and opaque’ personnel policy
Ghosn would shut down challenges to his authority by having people “transferred or dismissed under his unjust and opaque personnel policy,” the committee alleges.
There was also a failure of checks and balances on Ghosn’s power, because he had installed Kelly and “a few particular persons” at key departments in Nissan, including the company’s legal division and internal audit office, according to the report.
The accounting department was more independent. But even when employees there detected problems, they couldn’t follow up because of the influence Ghosn, Kelly and others had over other departments, the committee alleges.
Nissan’s Special Committee for Improving Governance was established after Ghosn’s arrest in Tokyo in November. The purposes of the committee, according to the report, “do not include assigning any criminal or other legal responsibility to any individual or corporation.”
A spokesperson for Ghosn dismissed the committee’s findings and questioned the report’s impartiality.
“Like the other allegations made since November, those found in this so-called independent ‘report’ will be revealed for what they are: part of an unsubstantiated smear campaign against Carlos Ghosn,” the spokesperson said in a statement.
“Ghosn acted at all times with the full authority of the board and its shareholders, and his paramount goal was achieving value for Nissan’s shareholders.”
Ghosn’s downfall shocked the international car industry, created tensions between Nissan and Renault, and raised questions about Japan’s criminal justice system.
Ghosn has denied any wrongdoing. If found guilty, he could face as long as 15 years in prison.
