Japan’s securities regulators have recommended that Nissan should pay a fine of $22 million (2.4 billion yen) for under-reporting the settlement fees of its former chairman.
The commission made this request today, stating that Nissan did not make a complete disclosure of the compensation package for their former chairman. The disclosure documents were made from 2014 to 2017.
Nissan already accepted the fine
In response, the car manufacturer said it had agreed to pay the fine, even though it had set the securities documents straight and amended the errors. However, the company is waiting for the official notice before making its final decision.
In a recent statement by the company, the recommendations are taken very seriously by the firm, and it is doing everything possible to resolve the situation, according to the firm.
Ghosn, who is now out on bail, was arrested last year in connection with financial misconduct and under-reporting compensation. However, he claimed he is innocent of all the charges, saying there was no agreement on the compensation.
He was arrested for understating his salary to the tune of 9.1 billion yen over ten years. He was also accused of the transfer of financial losses to Nissan’s account.
Earlier in June this year, the fine was supposed to be around 4 billion yen. But the fine has now been reduced to 2.4 billion yen if Nissan could file its documentation to SESC before the investigation commences. Both SESC and the SEC could not be reached for their comments on the issue.
Ghosn is a popular figure in the auto industry as he almost singlehandedly revived the ailing fortunes of the Nissan brand when he was appointed. Experts in the industry said his innovative policies helped to lift Nissan out of near bankruptcy to steady growth. But right now, his reputation in the industry has been tarnished because of the scandal. Ghosn is still calming innocence for the wring doing.
The date for his trial has not been determined yet, but prosecutors are very sure there is a strong case against him. They are withholding details of the evidence as they are hoping to present the case in court during the trial.
Charges rooted in conspiracy
The lawyers representing Gbosn said the allegation against him is a result of charges based on a conspiracy among the prosecutors, government officials, and his former company Nissan. They are conspiring to expel him to prevent a full merger between Renault SA of France and its alliance partner Nissan.
The recent scandal has also affected the sales of Nissan’s two new car models, the Infinity Luxury models, and the March subcompact. Profits and sales have dropped considerably since the beginning of the case. However, Nissan has already accepted lapses in its governance and has pledged to improve transparency within the organization.