Nice Try, Ghosn, But You Can't Try Yourself

(Bloomberg Opinion) -- Instead of a show trial in Tokyo we got the Ghosn show in Beirut. Neither offered the chance of a satisfactory outcome.

One of the most hotly anticipated press conferences in corporate history didn’t disappoint. Carlos Ghosn has lost none of his vim following his arrest, imprisonment and flight from Japan. Speaking in multiple languages, and often visibly enjoying the occasion, he forcefully argued his case for why he’s innocent of charges of undeclared income and misuse of corporate funds and why his arrest was really part of a conspiracy to stop him deepening the giant Renault-Nissan carmaking alliance. (Ghosn was previously boss of both the French and Japanese companies).

His confidence in his own abilities as a corporate leader remains undimmed. He couldn’t resist bringing up how General Motors Motor Co. tried to hire him in 2009 for double what he earned at Nissan Motor Co.; that business schools have written case studies about how he revived the near bankrupt Nissan after arriving there in 1999; and how the Renault-Nissan alliance has fallen apart and the two companies’ share prices have hit the skids since he departed.

To really stick the boot in, he even assailed Renault’s new leadership for missing out on a merger with Fiat Chrysler Automobiles NV that Ghosn had sought prior to his defenestration. Fiat is now getting hitched to Peugeot SA instead.

But a press conference — just the start of what’s sure to be a bitterly fought public relations battle — won’t suffice to clear his name. Indeed, the spectacle of him settling scores with Japanese prosecutors and his former employers, effectively trying himself before a baying press pack (and sporadically interrupted by applause from his acolytes) was unedifying.

Ghosn’s treatment by Japan was undeniably shabby. Weeks of solitary confinement, being interrogated for hours on end without a lawyer present, and being barred from seeing his wife, was deplorable. Japan’s 99%-plus conviction rate is questionable, to put it mildly. Other Nissan executives were subsequently revealed to have received excess income, but only Ghosn and his American colleague Greg Kelly were arrested.

Even so, Ghosn is now a fugitive from Japanese justice and it isn’t the only country to accuse him of wrongdoing. Renault also published concerns about financial relationships with third parties and various corporate expenses, including an infamous Marie Antoinette-themed party at Versailles. Ghosn settled charges brought by the U.S. Securities and Exchange Commission about his failure to declare $140 million of post-retirement income and benefits. Ghosn didn’t admit wrongdoing but he paid a $1 million fine and is banned from serving as a director in America for a decade.

Ghosn says he doesn’t think he’s above the law and insists he’s willing to stand trial anywhere provided he receives a fair trial. Of course, a just hearing is essential but it shouldn’t be up to Ghosn to determine the forum or the manner in which these claims are examined. (Ghosn dodged a question about whether he would go to France). It’s now going to be very difficult to arrange a trial anywhere. It will depend on the cooperation of Japan, which would naturally have reservations about assisting a wanted fugitive or undermining its own legal system.

Ghosn is vexed that he’s been portrayed in Tokyo as a “cold, greedy, dictator.” He sees himself as a victim and is determined to restore his reputation. But his flight from Japan, which relied on expensive hired help and private jets, showed how he operates by different rules to most people. He seemed to think that walking the streets of Tokyo during his release on bail without a bodyguard was in some way unusual. In one particularly ill-advised and vain comment he compared his failure to foresee his arrest to the U.S. not anticipating the Japanese attack on Pearl Harbor. Even now, he’s living in a house paid for by Nissan.

In fairness, at least Ghosn didn’t use the press conference to provide dramatic details about his escape from justice (perhaps he’s keeping them for the Netflix movie). Because, however exciting, that’s really not the story here. Ultimately Ghosn still has questions to answer and holding court in front of the world’s media doesn’t cut it.

One way or another, justice must still be served.

To contact the editor responsible for this story: James Boxell at jboxell@bloomberg.net

This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.

Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.

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