Former Nissan chief Carlos Ghosn’s chances of being released from jail before Christmas have been hit by a new move against him by Japanese prosecutors.
Ghosn, who has been jailed for more than a month, scored a small legal victory on Thursday when a Tokyo court rejected prosecutors’ request to extend his detention on allegations of under-reporting his income. That raised the possibility that the high-profile auto industry executive could be released on bail before Christmas.
But on Friday, prosecutors said they had rearrested Ghosn over additional allegations of breach of trust, which means they can hold him for at least another two days. With court approval, they can extend the detention by a further 10 to 20 days.
Ghosn’s arrest in Tokyo last month on allegations of financial misconduct has shaken the international auto industry and strained the alliance he built between Nissan (NSANY), Renault (RNSDF) and Mitsubishi Motors (MMTOF).
The prolonged detention of a prominent global business leader has drawn attention to the ability of Japanese prosecutors to hold suspects for extended periods without formally charging them.
His case has shown “international society how awful the Japanese criminal justice system is,” said Kana Sasakura, a law professor at Konan University in Kobe whose work includes fighting wrongful convictions in the country.
In their move to rearrest Ghosn on Friday, prosecutors alleged that he shifted 1.85 billion yen ($16.6 million) of losses from his private investments to Nissan as the global financial crisis erupted in October 2008.
The office of Ghosn’s lawyer in Tokyo didn’t immediately respond to a request for comment on the new allegations Friday.
Since his arrest on November 19, Ghosn has been fired as chairman by both Nissan and Mitsubishi Motors. Renault has appointed interim management but kept Ghosn on the payroll.
He is yet to issue a public statement in response to the growing number of allegations against him. Japanese media have cited unidentified sources as saying that he denies any wrongdoing.
Source: cnn.com