Former Nissan executive Kelly rejects financial misconduct allegations

Nissan Motor former representative director Greg Kelly rejects allegations of financial misconduct at the automaker, his lawyer stated on Thursday.

Kelly and former Nissan Chairman Carlos Ghosn were arrested on November 19 on suspicion of falsifying the Japanese firm’s yearly reports to understate Ghosn’s earnings over several years, rocking Nissan’s alliance with Renault.

“There was no additional compensation that needed to be stated” in the annual reports, the lawyer, Yoichi Kitamura, informed Reuters.

“All Ghosn received in compensation was included in Nissan’s annual financial statements,” he stated.

Kitamura stated Nissan’s top management had talked about making some payments to Ghosn after he left the company to avoid him from being hired by competitors.

But no agreement had been made between Nissan and Ghosn on such payments and no amount had been decided, he stated, and Nissan itself had not decided to make the payments.

Kelly and Ghosn have not been officially charged. They are being held in the Tokyo Detention Center, and have been unable to discuss publicly. They can be detained for 23 days under Japanese law prior any charges.

Japanese media have reported that Ghosn also rejects the allegations. He is reportedly represented by former prosecutor Motonari Otsuru, but he has not replied to requests for comment.