(Bloomberg) -- Japan’s institutions are being spurred into action by Carlos Ghosn’s daring escape, with the former CEO set to “name names” of those he says are responsible for his downfall when he speaks in a briefing in Beirut tomorrow.
Ghosn was under house arrest, facing trial for multiple alleged crimes when he abruptly announced a week ago that he’d slipped what was thought to be a tight security net, the latest twist in a yearlong saga.
Key Developments:
- Tokyo prosecutors obtain arrest warrant for Carole Ghosn on charges of false testimony
- Japan’s ministries move to close loopholes exposed by escape
- Tokyo District Court seizes Ghosn’s 1.5 billion yen ($13.8 million) bail bond
- Nissan says it’ll continue to take legal action to hold Ghosn accountable
- Ghosn plans to “name names” at briefing Wednesday
All times Japan:
Tokyo prosecutors get arrest warrant for Carole Ghosn (5 p.m.)
Japanese prosecutors are seeking to arrest Ghosn’s wife Carole, who is now in Lebanon with her husband. She could be arrested if she returns to Japan. Ghosn had been barred from meeting his wife while he was on bail in Japan, because authorities believed she had been aiding him in covering up for his crimes.
The warrant was obtained for giving false testimony in court last April related to her husband’s transactions, prosecutors said in a statement.
Japan’s ruling party frets over impact of Ghosn ‘attacks’ (2 p.m.)
Itsunori Onodera, a former defense minister and now head of the ruling Liberal Democratic Party’s research commission on national security, said Japan should be concerned about the impact of the forthcoming “attacks” that Ghosn will level at Japan’s reputation.
“Ghosn is likely to heavily attack Japan’s systems or its corporate culture,” Onodera told Bloomberg News. “Those remarks will be transmitted to the world and inflict large damage on Japan. We should be worried not just about his escape, but also about the impact” of his remarks, he said. The government should respond appropriately, he said.
Nissan tells workers to focus (1 p.m.)
In a letter to employees on Tuesday, Nissan CEO Makoto Uchida urged them to focus on the job at hand despite Ghosn’s escape from Japan and the resignation of vice chief operating officer Jun Seki last month. “Unfortunately, media coverage on the past executive misconduct will continue for a while,” Uchida wrote in the email, which was seen by Bloomberg News. “We can only revive Nissan by everyone contributing and working as one team.”
Japan talks to Lebanon, moves to close loopholes (12 p.m.)
In a flurry of briefings following the year’s first cabinet meeting, ministers moved to close off the loopholes that Ghosn’s extraction team, which included an ex-Green Beret, had identified to get him out of the country. Transport Minister Kazuyoshi Akaba said he had ordered compulsory inspection of cargo for private jets at four major airports, checks which had until now been at the discretion of the jet’s pilot. This appears to be one of the loopholes used by Ghosn, who hid in a large black case that was too big for the X-ray machines at the private aircraft terminal at Kansai International Airport in Osaka.
Justice Minister Masako Mori said she would consult with the ministry’s legislative council as soon as possible to discuss possible legal changes to prevent future escapes by suspects on bail. Kyodo News reported yesterday that GPS trackers, which aren’t currently used in Japan, were under consideration, following widespread shock that perhaps the most recognizable foreigner in Japan was able to simply walk out his front door and take a bullet train to Osaka. Mori again declined to give any details around how Ghosn fled, and defended the country’s legal system, which has been repeatedly attacked by Ghosn.
Chief Cabinet Secretary Yoshihide Suga, the government’s top spokesman, said Japan had told Lebanon that it finds Ghosn’s escape from Japan “highly regrettable,” and called on Lebanon to cooperate with its investigation.
Ghosn forfeits $14 million bail bond (11.50 a.m.)
The Tokyo District Court seized Ghosn’s 1.5 billion yen bail bond, Hiroki Yamakawa, a spokesman for the court, said. The bail bond was already one of the highest ever set in Japan, and is believed to be the largest amount ever forfeited in the country, Kyodo News said. Ghosn had protested the strict bail conditions set by the court, which included not leaving the country and being unable to see his wife. The bail had been opposed by prosecutors, who argued Ghosn had the means to escape.
Escape draws in British ex-serviceman (10:36 a.m.)
A further link to the escape emerged as the the Financial Times reported the escape has drawn a former British military member who found wealth in postwar Iraq providing aviation and fuel services.
A $175,000 invoice for the private jet that flew Ghosn from Osaka to Istanbul was paid on Dec. 26 by Al-Nitaq al-Akhdhar for General Trade Ltd., a company linked to ex-serviceman Mike Douglas, the report said, without saying where it got the information.
Douglas, CEO of Dubai-based SKA International, told the newspaper that any payment made was for logistics or cargo business, and not to charter any aircraft. “So as far as I’m concerned, we’re not involved,” the FT quoted him as saying.
Nissan goes on the offensive (10 a.m.)
Nissan gave its first official response to the escape, saying the automaker will take “appropriate legal action” against Ghosn for any harm caused to the company, maintaining its stance of holding him responsible for serious misconduct.
“The consequences of Ghosn’s misconduct have been significant,” the automaker said in a statement. “Carlos Ghosn’s escape to the Lebanese Republic without the court’s permission in violation of his bail conditions is an act that defies Japan’s judicial system.”
“The internal investigation found incontrovertible evidence of various acts of misconduct by Ghosn, including misstatement of his compensation and misappropriation of the company’s assets for his personal benefit,” the statement continued. “Nissan will continue to do the right thing by cooperating with judicial and regulatory authorities wherever necessary.”
With profits at decade lows and its stock tanking, Nissan is rife with internal divisions over the ouster of its former leader and the way forward.
Ghosn to ‘name names’ at briefing (9 a.m.)
Ghosn plans to give the names of people he believes are behind a “coup” to take him down, including those of some in the Japanese government, when speaks on Wednesday in Beirut, according to Fox Business Network’s Maria Bartiromo, who said she spoke to him last weekend.
Ghosn has previously asserted that there was a conspiracy behind his arrest and removal from power at Nissan, but stopped short of identifying those he believes were involved while he was in Japan. In a pre-recorded video in April before a scheduled press conference he initially sought to reveal Nissan executives who he claimed turned on him, though that segment was edited out in the version released to the public.
Ghosn told Fox that he’ll say at the Beirut briefing that he’s willing to have his case heard by any court, aside from those in Japan.
We’re live-blogging Ghosn’s Beirut press conference on the Bloomberg terminal, here.
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