As was reported in the press release titled “Regarding media reports on the arrest of the Chairman of the Board of Mitsubishi Motors Corporation” dated 20 November 2018, in response to the arrest of Mr. Carlos Ghosn (Mr. Ghosn), Ex -Chairman of the Board (Ex-Representative Director) of Mitsubishi Motors Corporation (MMC), MMC conducted an internal investigation by delegating it to a law firm outside MMC to confirm whether Mr. Ghosn was engaged in the same misconduct that he engaged in while at Nissan Motor Co., Ltd (Nissan). The investigation revealed that Mr. Ghosn improperly received a payment as allegedly “Managing Director’s remuneration etc.” from NissanMitsubishi B. V. (NMBV), which MMC and Nissan established on a 50-50 basis in the Netherlands in June 2017. This payment was hidden from MMC, and MMC recognized this fact for the first time through the disclosure of information by Nissan after Mr. Ghosn was arrested in November 2018. Later, a joint internal investigation conducted by MMC and Nissan uncovered the details. The investigation found no other suspicious misconduct in MMC itself nor its affiliate companies.
The details of the fact related to NMBV are as follows.
- NMBV was established to facilitate the generation of synergies by collaborating with Nissan. For this purpose, on 26 April 2018, MMC and Nissan paid approximately 15.62 million EUR (2.095 billion JPY) in total to NMBV as a service fee.
- From April 2018 to November 2018, Mr. Ghosn improperly received approximately 7.82 million EUR (including tax; approximately 1 billion JPY) from the service fee.
- This payment was made as remuneration on the basis of an EMPLOYMENT AGREEMENT that
NMBV and Mr. Ghosn entered into in order to appoint Mr. Ghosn as Managing Director. However, the EMPLOYMENT AGREEMENT was concluded by a person who was not authorized to do so in NMBV, and further, at NMBV, no appropriate procedure was taken to pay any remuneration to Mr.Ghosn.
The conclusion of the EMPLOYMENT AGREEMENT and the payment to Mr. Ghosn were carried
out in accordance with instructions given by Mr. Ghosn to some executives working for Nissan. At that time, despite the executives working for Nissan informing Mr. Ghosn that the approval of Mr. Osamu Masuko and Mr. Hiroto Saikawa＊, directors of NMBV, would be required prior to the conclusion of the EMPLOYMENT AGREEMENT, Mr. Ghosn entered into the EMPLOYMENT AGREEMENT without letting them know anything at all. As a result, in addition to Mr. Osamu Masuko, MMC employees and those temporarily working for NMBV had not been informed of these transactions. Mr. Osamu Masuko＊, a director of NMBV, and an MMC employee including temporarily working for NMBV had not been informed of these transactions.
With respect to this NMBV matter, MMC will further investigate the cause and consider action to pursue liability against Mr. Ghosn in collaboration with Nissan.
MMC has taken the fact that this kind of incident occurred within a related company of MMC seriously and will try to strengthen the internal controls of MMC, including those of its subsidiaries and related companies.
＊The directors of NMBV are Mr. Ghosn, Mr. Hiroto Saikawa and Mr. Osamu Masuko.
SOURCE: Mitsubishi Motors