Renault refers Ghosn to Paris prosecutors over Oman payments

PARIS, Apr 2, 2019, Kyodo. French carmaker Renault SA alerted French prosecutors Friday of possibly suspicious payments of millions of euros made under the Nissan-Renault partnership’s former CEO Carlos Ghosn to an Oman-based distributor, reported The Mainichi.

Reuters news agency reported that Renault paid “double-digit” millions of euros in incentives to Omani distributor Suhail Bahwan Automobiles over five years from around 2011.

Much of the money then flowed to Good Faith Investments Holding, a Lebanese company managed by Ghosn associates, then to privately held entities, Reuters reported, citing sources briefed on the findings.

Renault has been conducting an internal investigation on Ghosn following his arrest by Japanese prosecutors in November for alleged financial misdeeds during his time at Nissan Motor Co.

Dealer incentives are usually paid from budgets specific to marketing or to the region where the business is conducted. However, the money transferred to the Omani distributor was originally channeled from Ghosn’s “CEO office” budget controlled at his discretion at both Renault and Nissan, according to reports.

Nissan earlier found that 3.5 billion yen ($31 million) had been moved to the Omani organization from the budget.

Suspicions have also surfaced that part of the money was used to purchase a $15 million yacht, Reuters reported.

Renault declined to comment.

Ghosn is already under preliminary investigations by French prosecutors after Renault alerted them in February that it had uncovered evidence that the fee to rent the Chateau de Versailles for his 2016 wedding had been improperly charged to the company.

In Japan, Ghosn is charged with violating the financial instruments law by underreporting remuneration by 9.1 billion yen. He is also charged with aggravated breach of trust in relation to the alleged transfer of private investment losses to Nissan and paying $14.7 million in company funds to a Saudi businessman who extended credit to him.