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Ghosn's legal team asks for separate trial from Nissan's - for fairness

Junichiro Hironaka (seated, second from right), who represents former Nissan Motor Co chairman Carlos Ghosn, said that having Ghosn sit alongside Nissan at the upcoming proceedings would go against Ghosn's right to a fair trial.


LAWYERS for Carlos Ghosn asked a Tokyo court on Tuesday to try the ex-Nissan Motor Co boss separately from his former employer, arguing he would otherwise not get a fair hearing to fight charges of financial wrongdoing.

The request marks the first major legal manoeuvre by Ghosn's new legal team since his release on bail last month, as he faces mounting accusations of financial misconduct during his time at the helm of Nissan and partners Renault SA and Mitsubishi Motors, one of the world's biggest carmaking groups.

The case has shaken the global car industry and marked a dramatic fall from grace for an executive once lauded for his rescue of Nissan from the brink of bankruptcy two decades ago.

Tokyo prosecutors have indicted Ghosn and Greg Kelly, a close associate who served as a director on Nissan's board, on financial-misconduct charges. Nissan is also included in the indictment for making false disclosures in annual securities reports, for which the company has expressed regret.

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"No matter how you look at it, having Ghosn sit alongside Nissan at the trial would be peculiar, it would go against his right to a fair trial," his main defence lawyer, Junichiro Hironaka, told a briefing.

Ghosn was arrested in Tokyo in November after Nissan told prosecutors its own investigation uncovered evidence of his wrongdoing. He spent more than 100 days in a detention centre before being released on US$9 million bail last month. Ghosn, now ousted as chairman of Nissan, denies the charges, as does Kelly.

Ghosn faces criminal charges in Japan over failing to report around US$82 million in salary from Nissan, and for temporarily transferring personal financial losses onto Nissan's books during the global financial crisis. "It's right that his lawyers wouldn't want Ghosn to stand trial with Nissan. Nissan will plead guilty and that would clearly influence the mood of the trial," said Nobuo Gohara, a lawyer who heads Gohara Compliance and Law Office, which is not involved in the Ghosn case.

Mr Hironaka, a high-profile defence lawyer dubbed "the razor" for his courtroom prowess, told the briefing that his team wanted Ghosn's case separated from that of Kelly's because the American is a potential key witness for the Ghosn defence. Tokyo prosecutors were not immediately available to comment on Ghosn's lawyers' requests. A Nissan spokesman said the company could not comment on judicial procedures.

Mr Hironaka also said he did not rule out the possibility of further charges against Ghosn in Tokyo.

Reuters reported on Monday that Renault had alerted French prosecutors to payments made to a Renault-Nissan business partner in Oman, citing three sources.

Renault has established it paid out millions of euros described as dealer incentives to Omani distributor Suhail Bahwan Automobiles (SBA) over five years from around 2011, said the sources, who were briefed on the findings.

Mr Hironaka told the briefing he was aware of the report but had not spoken to Ghosn about it. Ghosn's French lawyers have denied the allegations of potential embezzlement in Oman.

An external committee reviewing governance at Nissan said last week there were enough facts to suspect violations of laws and the private use of company funds by Ghosn. REUTERS

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