Police Search Renault Offices -- WSJ
05 Juillet 2019 - 09:02AM
Dow Jones News
By Nick Kostov
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (July 5, 2019).
PARIS -- Police on Wednesday searched Renault SA's headquarters
for evidence related to the continuing investigation into former
Chief Executive Carlos Ghosn, according to people familiar with the
matter.
More than 20 officers conducted the search at the French auto
maker's headquarters in Boulogne-Billancourt, in the western
suburbs of Paris, these people said. Renault and the prosecutors
office, which is overseeing the investigation, confirmed the search
but didn't give further details.
In a statement, Renault said it is "fully cooperating with the
authorities." A lawyer for Mr. Ghosn, Jean-Yves Le Borgne, said the
search was a normal part of the investigation. "The truth should be
sought everywhere, so I don't see why they would have abstained
from this search," he said.
Mr. Ghosn was first arrested on Nov. 19 in Japan for alleged
financial misconduct, which he denies. Renault was initially
circumspect about Nissan Motor Co.'s accusations against Mr. Ghosn;
but under pressure from its Japanese partner, the company launched
its own probe into its former head's remuneration and use of
company assets.
French prosecutors opened an investigation in February after
Renault turned up evidence that Mr. Ghosn had allegedly misused a
company sponsorship to stage a black-tie party at a Versailles
château to celebrate his wife's birthday.
Renault said at the time that Mr. Ghosn may have personally
benefited to the tune of EUR50,000 ($56,457) from a sponsorship
agreement that Renault had entered into with the Palace of
Versailles.
Mr. Le Borgne, the lawyer for Mr. Ghosn, said at the time the
executive received free use of space at Versailles but wasn't aware
it would affect benefits Renault received under the sponsorship
agreement. The lawyer added that the auto titan would pay
Versailles for the space to ensure there would be no financial
damage to Renault.
Since then, Renault has notified French prosecutors about
payments it made to an Omani car distributor over several years,
following a request for legal assistance made by Japan to France.
Nissan and Japanese prosecutors have investigated whether Mr. Ghosn
funneled millions of dollars of company funds through the Omani
distributor for personal use, possibly including the purchase of a
yacht, according to people familiar with the matter.
A lawyer for Mr. Ghosn has denied wrongdoing, adding that the
transfers from Renault and Nissan to the Omani distributor were
"normal payments linked to business."
More recently, the French prosecutor's probe has been widened to
include spending by Mr. Ghosn at Renault's Dutch joint venture with
Nissan, according to one of the people familiar with the matter.
Renault's board last month said Mr. Ghosn ran up millions of
dollars in questionable expenses at the joint venture, citing his
corporate travel and donations he made to nonprofit
organizations.
Through a spokesman, Mr. Ghosn disputed that he billed any
personal expenses to his employers.
"This is part of a well-orchestrated effort to turn Mr. Ghosn
into a caricature and dismantle his reputation for integrity and
excellence built over several decades," the spokesman said in
April. "All of these expenses were both authorized and tied to
legitimate business purposes."
The French investigation into Mr. Ghosn is being carried out by
Oclciff, the police's anticorruption and financial crime
department. One of Mr. Ghosn's properties near Paris was also
searched in connection with the probe last month.
Write to Nick Kostov at Nick.Kostov@wsj.com
(END) Dow Jones Newswires
July 05, 2019 02:47 ET (06:47 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.