Carlos Ghosn will be removed from the head of the Mitsubishi company after he was arrested in Tokyo, according to a statement the auto maker made on Monday. The former Renault and Nissan executive is facing charges of fraud related to his own income.
He took the helm of Mitsubishi after Nissan bought 34 percent of the company and managed to bring it to profit after six months. Now Mitsubishi will conduct an internal investigation to find out whether Ghosn was involved in fraud with the company’s funds.
“Mitsubishi Motors Corporation (MMC) today announces that media outlets reported that MMC’s Chairman of the Board and Representative Director, Carlos Ghosn, had been arrested by Tokyo District Public Prosecutors Office on the charge of filing annual securities reports containing fake statement, in breach of the Financial Instruments and Exchange Act. In response to the arrest of Ghosn, and since the alleged misconduct is related to a corporate governance and compliance issue, it is to be proposed to the Board of Directors to promptly remove Ghosn from his position as MMC’s Chairman of the Board and Representative Director. We will readily conduct an internal investigation on whether Ghosn has been engaged in the misconduct like the above within MMC.”