Carlos Ghosn Scandal and Patgulipat Case Rows of Japanese Companies

tirto.id – The glory of Carlos Ghosn's professional career has led the business ship as president Nissan Motor Co. for two winds tainted by corporate scandals leading to prosecution. This Lebanese man is believed to have rigged his findings with Nissan Motor officials Greg Kelly.

Nissan's internal team discovered the results, but Ghosn did not report his income of 5 billion yen (equivalent to IDR 638 billion) in fiscal year 2010-2014. In the report Japan Times this action was aimed at avoiding the protests of Nissan officials about Ghosn's excessive fees.

Japan Times Kelly wrote the documents related to Ghosn's income after the Japanese government asked him to mention the names of senior officials earning over 100 million yen a month. However, Ghosn has only reported a billion yen a year. This means that there is no obligation to declare the amount of income to the government. In addition, the 54-year-old was charged with misusing the company's badets for personal gain. Of these, the property of a dwelling in Amsterdam, the Netherlands, is known to be purchased with money from the company and in three other countries.

Quote CNNthe case led Mr Ghosn to a maximum penalty of 10 years imprisonment and a fine of up to 10 million yen. The hefty consequence that Ghosn had to accept for stolen action was being ejected from Nissan's leadership summit. Renault and Mitsubishi would soon have expelled Ghosn from the throne.

Before the case was detected, Ghosn was an important figure in the superiority of the Renault-Nissan-Mitsubishi alliance. In 1996, Ghosn joined Renault and managed to survive the bankruptcy of the French manufacturer.

Five years later, it was thought that the man born in Brazil was the CEO of Nissan after Renault had taken over 40% of the shares. Ghosn was good at concocting business strategies, especially reducing production costs. He has been nicknamed "the cost cutter". Nissan, which in the late 90s nearly went bankrupt with a debt burden of 2,000 trillion yen, was also successfully lifted by Ghosn in a short time.

Nissan's financial situation hardened until it finally bought 35% of the shares of Mitsubishi Motors Corporation in 2016. It is a Renault-Nissan-Mitsubishi alliance that , in 2017, had managed to sell 10.6 million vehicles, the second largest in the world after Volkswagen.

Japanese scandal of corporate finance

Financial fraud is not new in Japanese companies. Camera companies and medical data loggers, Olympus, stumbled on a financial scandal that caused an uproar in 2011.

Old figure President Olympus Tsuyoshi Kikukawa is the main suspect. Kikukawa and his clan have been accused of conspiring to extract money from the company. They have come together to let the flow of funds flow for years with a face value of $ 1.7 billion. The practice of deception was revealed after the new CEO of Olympus, Michael Woodford, inspected the company's finances. From there, Woodford discovered that there was a flow of funds whose purpose was not clear.

Woodford said Asia Channel Newshis actions to dismantle the scandal were condemned by the company's leaders. At an emergency meeting, the first foreigner to head the Olympus trading vessel was evicted by the executive council for not spitting on Kikukawa 's fraud and was fired at that time.

After being kicked out of the board meeting and fired, Woodford returned to his apartment to pack his bags. In an uncomfortable situation, Woodford is still trying to investigate the Olympus scandal.

Before leaving Japan, Woodford met with newspaper correspondents Financial Times, Jonathan Soble in a cafe. He disclosed various information, including his findings regarding the financial statements, which were strange to Soble.

"He met me with a file containing (documents) evidence to support the disclosure, and then he went to the airport," Soble said.

Woodford's information immediately made the news after Financial Times publish it. The international media also highlighted the scandal.

In response to the mbad of information in the media, Olympus has appointed a group of independent experts to uncover the fraud case. It was subsequently proven that Kukikawa and his friends were guilty of embezzling funds from the company. Kukikawa was sentenced to three years in prison and five other leaders were thrown in jail. In addition, they must compensate the company for the shared losses of 520 million USD.

The problem of financial fraud also arises in the Toshiba electronics manufacturing company. In 2015, Toshiba was shaken by the issue of inflating its $ 1.3 billion earnings report since the 2008-2014 fiscal year.

The plot was conducted to thwart the missed target company. The investigation team explained that to achieve a very high goal, each division had made handy financial reports at the request of the company's managers.

"At Toshiba, there is a kind of corporate culture that superiors can not deny, so when senior officials dispute, division heads, line manager, and subordinates establish financial reports that are unsuited to the objectives set by the superior ", writes the report of the investigating team quoted The Guardian.

As a result of the case, investor confidence has declined. Toshiba's share price fell 26% in the three months following the publication of the problem. Hisao Tanaka, President and CEO of Toshiba, and Vice-president Norio Sasaki resigned from his post because he was accused of being behind the profit bubble scandal.

The Japanese government has not traded with deceived businesses. In addition to imprisonment and fines imposed on business executives, the court also fined Olympus 700 million yen for fraudulent financial statements.

In the Toshiba case, the Japanese Financial Supervisory Authority fined the company in the form of a $ 60 million fine. It was not until the financial auditors who handled Toshiba, Ernst & Young Shin Nihon did not escape the sanctions.

The Financial Supervision Service in Japan, the Financial Service Agency, has sentenced Erns & Youngshin Nihon in the form of a ban on receiving a new three-month work contract from the end of 2015 and from the end of 2015. a fine of 2.1 billion yen. The sentence, said Forbes, is a consequence of the inability of the auditor to ensure the accuracy of Toshiba's financial statements.

Fraud or financial scandals have occurred not only in Japan, but also in many countries, including Indonesia, where internal companies were involved. The Toshiba case in Ghosn can be a lesson that there is still a gap in patgulipat.