Tokyo | The chairman of Nissan Motor Carlos Ghosn arrested the payments that reported his income and misused company funds caused the company's shares to turn and leave many of them in Japan's shock by its reduction.
Prosecutors on Tuesday said they were sorry for claiming joint working to falsify securities statements and Gosn income under the report. It is also suspected that the second executive of Nissan, Greg Kelly, work with him to underline $ US44.6 million ($ 61.3 million) in Ghosn income from 2011-2015.
Cabinet's First Secretary, Yoshihide Suga, said on Tuesday that the government is watching for a scarcity of economic scandal as one of the world's largest makers. "It's very distressed," said Suga of the arrest. "We will watch the development closely."
Gosn was arrested on Monday and Nissan CEO, Hiroto Saikawa, said the company board would meet on Thursday to approve its dismissal. Prosecutors refused to say where it was being held in Tokyo.
Ghosn did not speak the word about the situation. According to the report, he was questioned and arrested soon after arriving Monday from a private jet board on board.
The executive named in Brazil became one of the most powerful operators of the car industry through engineering in Nissan and leading the company for almost decades.
Following the scandal, he questioned the future of Gosn as the leader of the Renault-Nissan-Mitsubishi league, who sold last year's 10.6 million cars, more than any other manufacturer.
Saikawa said at a late 90 minute news conference on Monday that the company was late for some change and that power had been overweight in one person.
Having asked again about how the company could have left financial misconduct for a long time, systems inside Nissan have been transparent.
The scandal was a "negative result of Mr Ghosn's long regime," he said.
Ghosn is still leading the Renault-Nissan-Mitsubishi league as CEO and chair. But experts said it was unlikely that he could stay there or at Renault, where he is also CEO. Renault said that his board would be holding an emergency meeting soon.
The league companies are each other's parts and share investments in new technologies, among other things. Renault owns 43 per cent of Nissan, who owns 15 per cent of Renault and 34 percent of Mitsubishi.
The accusations are a serious blow at the time when Nissan still erases a scandal where he admitted to change the results of emission testing and fuel production on vehicles sold in Japan.
A press release from the office of prosecutor in Tokyo said that Gosn and Kelly have worked together to surrender the Gosn income report as a 4.99 billion ¥ ($ 60.5 million) although it is actually almost 10 billion yen ($ 121 million), submitting fake guarantees statements to the regional budget Bureau.
The compensation from Nissan was only part of the overall income because it also pays salaries from the key components of the Renault automaker and Mitsubishi Motor.
Nissan's 5 percent shares in Tokyo dropped trading on Tuesday. Classes joined Renault 8.4 per cent in Paris on Monday.
A next step is expected by prosecutors soon. The police can hold suspects free of charge for days, but only 48 hours for prosecutors decide to push on charges. If they decide they need more time, they can suspect for a further 20 days.
Gosn signed a contract this year that would have run until 2022. From a French, Brazil and Lebanese background, he lives in Japan and France, where Renault has turned around, making it a global player.
Nissan said he had notified the authorities for suspicions of fake financial and misuse financial reports and company assets from Ghosn after a monthly investigation caused by whistleblower.
Saikawa gave only limited details about the case, saying that he had been restricted due to the ongoing criminal investigation.
Apologizing repeatedly, he promised to improve the governance of the company.
"Sorry, I'm feeling disappointed, frustrated, desperate, depressing and depressing," Saikawa said.