Nissan auditors had doubts in Ghosn – 28/11/2018 08:44:54

TOKYO (Reuters) – Nissan's audit firm has repeatedly questioned transactions at the heart of financial fraud charges against Carlos Ghosn, but the Japanese automaker badured him that everything was done in the rules Reuters told Reuters a source close to the case.

Ernst & Young ShinNihon interviewed Nissan management several times, mostly around 2013, about buying luxurious residences abroad for the personal use of his boss, also Renault CEO and the Renault Alliance -Nissan, and rights to the appreciation of the shares granted to it.

However, the Japanese manufacturer told him that the group's financial transactions and communications were in line with the rules, the source said.

Carlos Ghosn has been in custody since November 19 in Japan, the Tokyo prosecutor's office and Nissan accusing him of not having declared all his income and to have diverted property of the company for personal purposes.

The Japanese builder, who then ousted Carlos Ghosn as chairman of his board, said the fraud was orchestrated by Carlos Ghosn himself with the help of another director, Greg Kelly.

A spokesman for EY ShinNihon, a Japanese branch of Ernst & Young, said he could not comment on specific cases while Nissan declined to comment.

Carlos Ghosn, who is unable to speak publicly, denies the charges against him, the Japanese media reported.

The cabinet of Motonari Otsuru, presented as his lawyer in the Japanese media, refused to answer Reuters questions Wednesday.

EY ShinNihon notably asked Nissan's management whether the Dutch entity Zi-A Capital BV, which bought the residences abroad for Carlos Ghosn, was operating in accordance with its stated investment company status, said source.

The builder replied that this was the case, added the source. The Japanese media estimates that the amount of these real estate transactions has exceeded 2 billion yen (15.5 million euros).

EY ShinNihon's accountants also asked whether stock appreciation rights should be declared. Nissan responded that it was not necessary, according to this source.

These rights are like stock options but paid in cash when the share reaches a certain price defined in advance.

According to the Japanese media, these rights attributed to Carlos Ghosn amounted to about 4 billion yen.

The Japanese broadcaster NHK first reported the interrogations of the audit firm.

(Takahiko Wada, with Kazuhiko Tamaki and Sam Nussey, Bertrand Boucey for French service, edited by Pascale Denis)