Nissan Chairman, Carlos Ghosn arrested in Japan for corruption and misconduct

Carlos Ghosn, Nissan Motor Co Ltd’s chairman, has been arrested in japan for corruption and misconduct.

The Japanese automaker said that Ghosn had used company money for personal use and that it had been investigating possible improper practices of Ghosn and Representative Director Greg Kelly for several months.

The news comes as a shock in Japan where Ghosn, a rare foreign top executive, is well regarded for having turned Nissan around from near bankruptcy. Ghosn is also chairman and chief executive of France’s Renault.

The Japanese automaker, Nissan Motor Co Ltd, said that based on a whistle blower report, it had been investigating possible improper practices of Ghosn and Representative Director Greg Kelly for several months, and that it was fully cooperating with investigators.

It said was moving to terminate Carlos Ghosn from his chairman’s post after finding that he had used company money for personal use and committed several other serious acts of misconduct.

“The investigation showed that over many years both Ghosn and Kelly have been reporting compensation amounts in the Tokyo Stock Exchange securities report that were less than the actual amount, in order to reduce the disclosed amount of Carlos Ghosn’s compensation,” Nissan said in a statement.

Nissan further said that CEO Hiroto Saikawa would propose to the Nissan board to remove Ghosn and Kelly.

The Asahi newspaper reported on its website that prosecutors had begun searching the offices of Nissan’s headquarters and other locations on Monday evening.

However, the Tokyo District Public Prosecutors Office declined to comment.