Japanese prosecutors re-arrested former Renault Nissan Mitsubishi Alliance boss Carlos Ghosn on Friday on new charges.
The new charges allege Ghosn transferred losses exceeding $16 million from his own private investments onto the books of Nissan between 2008 and 2012, thus inflicting financial damage on the automaker, Bloomberg reported Friday.
Ghosn, who was originally arrested on November 19 on allegations of financial misconduct at Nissan, and later charged with violating Japan's financial reporting rules regarding disclosure of his salary, was expected to be released Friday from a Tokyo prison after a court rejected a request by prosecutors to extend his detainment.
However, the new charges mean prosecutors can hold Ghosn for at least a further 10 days and possibly longer as an investigation continues.
It isn't clear if another former Nissan exec, Greg Kelly, who was arrested with Ghosn in November, is included in the latest indictment. Kelly's wife Dee on Thursday said via a video statement to The Wall Street Journal that her husband had been “wrongly accused as part of a power grab” at Nissan. It's rumored senior Nissan executives were against Ghosn's push for a full merger of Nissan with Renault.
So far both men have denied any wrongdoing.
Renault has decided to retain Ghosn as chairman and CEO as the investigation continues but Nissan and Mitsubishi both fired him from chairman roles shortly after his first arrest. Kelly was also fired from Nissan at the time.
Renault owns 43 percent of Nissan while the Japanese automaker only holds a 15 percent non-voting stake in the French firm—despite Nissan being almost 60 percent bigger than Renault by sales. The situation came about due to Nissan's near bankruptcy in the late 1990s.
Ghosn had managed to turn around an ailing Renault in very short time in the mid-'90s. He then oversaw Renault's initial purchase of a 36.8-percent stake in Nissan in 1999, at which point Ghosn then helped to turn around the Japanese firm's fortunes. As part of the deal, Nissan in 2001 bought its 15-percent stake in Renault. Mitsubishi was brought into the alliance in 2016 when Nissan purchased a 34-percent stake in its domestic rival following a fuel economy scandal in Japan.