Renault ex-boss linked to 11m euros of suspicious spending: board

[PARIS] An internal audit conducted by carmakers Renault and Nissan identified 11 million euros of questionable expenses at their Dutch subsidiary linked to Carlos Ghosn, the ousted boss of the French-Japanese group, the Renault board said on Tuesday.

Board members, who were meeting on Tuesday to discuss a proposed merger with Fiat Chrysler, heard of the suspicious spending at RNBV from auditors Mazars and said they think Renault with Nissan should consider taking possible "legal action" in the Netherlands, a statement from the group said.

"The conclusions confirmed the deficiencies at RNBV with regard to financial transparency and control procedures for spending," the board said, noting that the auditors had initially spotted the problem in early April.

The suspicious expenses came to 11 million euros (S$16.9 million), including "certain spending by Mr Ghosn," and over-charging for his plane travel, it said.

The holding Renault-Nissan BV, equally owned by the two automakers, was created by Ghosn.

The former Renault CEO, who was also Nissan chairman, was arrested on November 19 in Tokyo.

The 65-year-old Ghosn, who claims his innocence, awaits trial over charges of under-reporting his salary for years while at Nissan and using company funds for personal expenses.

AFP