Japanese court approves 10-day detention for Nissan’s ex-chairman

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A Japanese court has approved prosecutors’ request to keep Nissan’s former chairman Carlos Ghosn in detention for another 10 days.

The Tokyo District Court said that the approval is for prosecutors to investigate further his third allegation of breach of trust for causing Nissan a loss of 1.8 billion yen (£12 million) in 2008.

Sunday’s extension allows prosecutors to keep Ghosn at the Tokyo detention house until New Year’s Day.

Ghosn and another executive Greg Kelly were arrested on November 19 and charged with underreporting Ghosn’s income for 2011-2015 by about five billion yen (£35 million).

Other charges for additional underreporting of Ghosn’s pay by about four billion yen (£28 million) are pending.

Japan Nissan Ghosn
The latest allegation only applies to Carlos Ghosn (Eugene Hoshiko/AP)

Kelly’s bail request filed by his lawyer on Friday is still pending and could come sometime after Christmas.

Prosecutors allege that Ghosn in 2008 transferred a private investment loss worth more than 1.8 billion yen to Nissan by manipulating an unspecified “swap” contract.

Ghosn also profited by having the car maker transfer a total of 14.7 million dollars (£11.6 million) to another company to benefit himself and that company’s owner, who helped in the deal, prosecutors said.

Japan’s NHK public television said the company owner is a Saudi Arabian acquaintance of Ghosn.

The arrest of an industry icon has triggered international attention.

Prosecutors have been criticised for separating the same allegation into two periods as a tactic to detain Ghosn and Kelly longer.

They say Ghosn and Kelly are flight risks. No trial date has been set.

Nissan has dismissed Ghosn as chairman and Kelly as a representative director since the allegations were made. Nissan has put off a decision on Ghosn’s replacement.

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