Nissan seeks to block Ghosn family access to Brazil apartment
Carmaker cites ‘high likelihood of evidence being removed or destroyed’
Nissan has sought to deny family members of Carlos Ghosn access to an apartment in the Copacabana neighbourhood of Rio de Janeiro in a bid to protect what the carmaker claims is potential evidence of misconduct by the arrested former chairman.
In a statement on Sunday, Nissan said it was appealing against a local court decision that granted permission to Mr Ghosn’s representatives to enter the company-owned apartment to retrieve personal belongings. Nissan said it opposed the decision due to “a high likelihood of evidence being removed or destroyed”.
The Japanese carmaker believes a safe in the apartment contains evidence that funds from a Nissan subsidiary in the Netherlands, called Zi-A Capital, were used to purchase the residence, a person with knowledge of the dispute claimed.
When Zi-A was formed, Greg Kelly, another Nissan board member and Mr Ghosn’s close aide who was also arrested, explained to the company’s executive committee that it would be used for venture capital investment. Tokyo prosecutors are investigating whether Zi-A, which received an investment of more than €70m from Nissan, was used to purchase personal residences in Lebanon and Brazil in 2011 and 2012.
Members of Mr Ghosn’s family are seeking to retrieve family documents and personal possessions from the apartment but have said they are prepared to do so in the presence of a judge or court officer in order to ensure that the process is transparent. They are also nervous about representatives of Nissan entering the house without a court officer present, according to people familiar with the family’s thinking.
Separately, Nissan suspects the safe may hold details of dealings Mr Ghosn had with prominent political and business figures in Brazil, some of whom were later jailed on bribery and corruption charges.
Nissan has seized company-owned residences in Rio de Janeiro and Beirut that were used by Mr Ghosn after Tokyo prosecutors arrested the former chairman for allegedly understating his pay in financial documents, according to people with knowledge of the developments.
A separate internal investigation by Nissan alleged that Mr Ghosn used company funds for personal uses.
People with knowledge of the investigations say Mr Ghosn, who remains chairman and chief executive of France’s Renault, is also suspected of using non-consolidated subsidiaries in the Netherlands to buy personal residences in Beirut, Rio de Janeiro and Paris.
The escalating legal dispute with Mr Ghosn’s family members comes as Tokyo prosecutors are expected to indict Mr Ghosn and Nissan as soon as Monday over the alleged falsification of financial statements, according to two people with knowledge of the investigation.
Among the individuals that Nissan believes Mr Ghosn had dealings with is Eike Batista, formerly Brazil’s richest man.
In July, the energy, logistics and real estate magnate was given a 30-year prison sentence for paying $16.6m to Sérgio Cabral, his former friend and then governor of the state of Rio de Janeiro, for help with his business ventures.
Mr Ghosn is also believed to be friends with Cabral, according to the person with knowledge of the Brazilian legal dispute. Last year, Cabral was sentenced to 14 years in prison on corruption and money laundering charges.
People familiar with the investigation say that none of the interrogation that Mr Ghosn has so far undergone touches on his alleged dealings with prominent figures in Brazil.
Nissan has not formally accused Mr Ghosn of any inappropriate connections with Batista or Cabral.
The Japanese carmaker has sought similar measures to block the access of Mr Ghosn’s family members to his residences in other cities although it has not been able to access his residence in Paris.
Mr Ghosn’s Japanese lawyer could not immediately be reached for comment. A spokesman representing Mr Ghosn’s family declined to comment.
Mr Ghosn has denied to Tokyo prosecutors that he intentionally understated his pay in financial documents, according to Japanese broadcaster NHK.