Ghosn to Be Rearrested on Mon. for Hiding More Pay

Tokyo, Dec. 7 (Jiji Press)--Japanese prosecutors are set to rearrest former Nissan Motor Co. <7201> leader Carlos Ghosn on Monday, when his current detention expires, for additional charges over the alleged non-disclosure of part of his hefty pay, informed sources said Friday. Last month, Ghosn, 64, then chairman of the major Japanese automaker, and then Nissan representative director Greg Kelly, 62, were apprehended on charges of excluding from Nissan's financial statements a total of about 5 billion yen in Ghosn's pay from the company between fiscal 2010 and fiscal 2014 in violation of the Financial Instruments and Exchange Act. The prosecutors now suspect that the pair also underreported Ghosn's executive pay between fiscal 2015 and fiscal 2017, by a total of about 4 billion yen, against his actual compensation of some 7 billion yen in the three years, according to the sources. Kelly is also set to face fresh arrest on Monday, the sources said. The Ghosn side is believed to have attempted to conceal the total of about 9 billion yen by preparing a scheme to allow him to receive the deducted amounts after leaving office. The prosecutors are believed to have obtained under plea bargaining documents related to the secret pay scheme from Nissan executives involved in the maneuvering. During the investigation, Ghosn has claimed that Nissan employees could have lost motivation if they had known the actual amounts of his remuneration, according to people familiar with the probe. Ghosn and Kelly have both denied breaching the law. Ghosn has claimed that the amount of his post-retirement pay had not been fixed and that there had been no reporting obligation. Kelly has insisted that he had consulted with the Financial Services Agency and external legal experts about Ghosn's post-retirement pay. END