Nissan executive Munoz resigns after Ghosn’s arrest

Nissan executive Munoz resigns after Ghosn's arrest

Nissan executive Munoz resigns after Ghosn's arrest

The special investigative unit is now waiting for replies to requests for cooperation made to foreign authorities, but a top official in the prosecutors' office disclosed, "Just how much evidence we will be able to gather is unknown".

Ghosn remains the titular boss of Renault and the overall alliance. Prosecutors also filed charges Friday against Nissan and Ghosn aide Greg Kelly over the additional three years of under-reporting pay.

The alleged payments to Sepehri pre-date that period and could stoke questions about Ghosn's financial management, after French daily Liberation reported that he had not been paying French income taxes since 2012, after moving his fiscal residency to the Netherlands.

Ghosn, arrested November 19, was earlier charged with falsifying financial reports in underreporting his income by about 5 billion yen ($44 million) over five years through 2015.

A source at Renault said executives at both the French company and Nissan had received bonuses for specific tasks.

Nissan Motor has terminated the lease to ex-Chairman Carlos Ghosn's luxury apartment in Tokyo, Ghosn's legal team said on Friday, as the Japanese automaker cuts ties with the executive following his arrest in November.

Ghosn, who appeared much thinner than before his arrest, came down with a fever the day after his court appearance, but has since recovered, Ohtsuru, the lawyer, said. "We are fearful and very anxious his recovery will be complicated while he continues to endure such harsh conditions and unfair treatment", she said. It refused to provide information. Such visits were cancelled Thursday but resumed Friday.

While declining to comment on specifics, Deputy Chief Prosecutor Shin Kukimoto told reporters that indicted suspects are usually detained for several months.

Ostensibly, bail could be denied on the grounds that as long as Ghosn continues to assert his innocence, he could flee the country or seek to destroy evidence, said Nobuo Gohara, a defense lawyer and former prosecutor who is critical of Japan's criminal justice system.

The breach of trust charge alleges that 1.8 billion yen ($16.7 million) in damage was caused to Nissan through transactions made by Ghosn, and that $14.7 million was paid to the Saudi businessman. Prosecutors yesterday slapped the 64-year-old with a formal charge of under-declaring his income by around four billion yen ($37 million) over three years from 2015. His attorneys said the transactions were legitimate and approved by the company's board, and that they didn't lead to losses for the company.

The crisis unleashed by Ghosn's arrest has deepened as Nissan CEO Hiroto Saikawa seeks to end 43.4 percent-owner Renault's grip on their alliance. It reiterated harsh words against Ghosn.

The company added, "Nissan does not in any way tolerate such misconduct and calls for strict penalties".