TOKYO (Reuters) – Nissan Motor Co’s auditor had repeatedly questioned transactions at the heart of allegations of financial misconduct by former chief Carlos Ghosn but Nissan said they were proper, a person with direct knowledge of the matter said on Wednesday.
Ernst & Young ShinNihon LLC questioned Nissan’s management several times, chiefly around 2013, about purchases of overseas luxury homes for Ghosn’s personal use and of stock-appreciation rights that were conferred on him.
Automaker - Transactions - Reporting - Source - Reuters
But the Japanese automaker said the transactions and financial reporting were appropriate, the source told Reuters on condition of anonymity.
The revelation shows Nissan and its auditor were discussing the transactions, in apparent contrast with Nissan’s contention that the alleged misreporting of benefits for Ghosn was masterminded by Ghosn and a key lieutenant.
Spokesman - EY - ShinNihon - Affiliate - Accounting
A spokesman for EY ShinNihon, the Japanese affiliate of global accounting firm Ernst & Young, said he could not comment on specific cases. A Nissan spokesman declined to comment.
Ghosn was arrested on Nov. 19 as he arrived in Japan. Prosecutors accuse him of falsifying Nissan’s annual reports to understate by about half his total compensation of some 10 billion yen ($90 million) over several years.
Executive - Allegations - Media - Ghosn - Custody
The high-profile former executive has denied the allegations, according to Japanese media. Ghosn remains in custody and is unable to speak publicly. He is represented by former prosecutor Motonari Otsuru, according to Japanese media.
Otsuru’s law firm declined to comment on Wednesday, and Otsuru has not responded to requests for comment.
Nissan - Blame - Ghosn - Greg - Kelly
Nissan has largely pinned the blame on Ghosn and Greg Kelly, a former representative director who was arrested...
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