Tokyo’s Latest Twist on Ghosn’s Saga
What’s Really Going On? Nissan’s former boss, Carlos Ghosn, has been caught in a fresh web of controversy. Japanese prosecutors are now claiming that Ghosn used Nissan money to bail out a Saudi businessman who supposedly helped him navigate financial rough patches. Here’s the low‑down.
How the Allegations Unfolded
- Third Arrest: Ghosn was detained again on Dec 21 for allegedly mishandling investment losses that hit Nissan.
- Back‑dated Losses: In late 2008, he reportedly had a lost‑to‑book pile of 1.85 billion yen (about $22.8 million) tied up in a mysterious swap with an unnamed bank.
- Saudi Connection: A Saudi figure—Khaled Al‑Juffali—helped set up a letter of credit in Ghosn’s name. The Saudi-owned company ended up receiving $14.7 million from Nissan, split into four payments between 2009‑2012.
- Purpose of the Money: According to the charges, the cash got funneled into the ‘CEO Reserve’—an internal discretionary fund—before moving to a space that ultimately benefited Al‑Juffali.
Who’s Involved?
Al‑Juffali sits atop Saudi giants E. A. Juffali & Brothers and serves on the Saudi Monetary Authority board. He also leans on Al‑Dahana, which owns half of a joint venture called Nissan Gulf. The venture, once covering Saudi, Abu Dhabi, Kuwait, and Bahrain, now focuses only on Kuwait and Bahrain—details yet to be fully unpacked.
Ghosn’s Perspective
Ghosn’s side is a mixture of denial and outsourcing. His lawyers say the four transfers were legitimate business moves, or at least “reward” payments for fixing dealer problems in Saudi Arabia. Many former colleagues—like ex‑representative Greg Kelly—failed to get a chance to explain their side after being released on bail Christmas Eve.
Investigations & Prosecution
- Nissan’s Probe: Internal checks show Ghosn tried to have Nissan absorb the losses outright—an effort that the company (and perhaps Japan’s Securities and Exchange Surveillance Commission) deemed illegal.
- Prosecutors’ Stance: Tokyo prosecutors home in on hidden transactions, insisting Ghosn acted with a breach of trust and wronged the company.
- Japanese Legal Play: The Japanese system permits repeated arrests under different charges, letting prosecutors hold suspects and interrogate them—even without a lawyer on the scene.
What Comes Next?
Ghosn remains in custody. Prosecutors have been granted a 10‑day detention—likely to be extended again. The case, entangled with Nissan’s strained partnership with France’s Renault, is just beginning to paint a full picture. For now, the money trail remains the California‑delic Q‑course that some say will be the final piece of this automotive drama.
