Carlos Ghosn: from businessman to wanted fugitive
Analysis by Farah Termos, Staff Writer
August 4th, 2020
Another tale of political persecution
Back in January, Carlos Ghosn, the former CEO of Nissan, turned diplomatic heads west when he fled the tightly knit, highly populated city of Tokyo to escape from prosecution. His conviction, that of which entailed embezzlement of funds and reporting false predicaments of company earnings, took place in Japan, otherwise known for its exceedingly high conviction rate. Yet, his dramatic escape from Tokyo to Beirut changed global political prosecution, amassed international worry over righteous surveillance at a time where everyone’s steps are calculated and watched, and consequently urged even Interpol to intervene.
Carlos Ghosn: A brief overview of the man fleeing prosecution
Born in Brazil, raised in Lebanon, and educated in France - Carlos Ghosn easily became a citizen of three countries at the beginning of his life. His ability to adapt, along with being a polyglot, allowed Ghosn to successfully endeavour in the business world. He was notably the chairman of several companies like Mitsubishi Motors, Michelin North America, and CEO of Renault, and the latest of which is Nissan. In April 2017, Ghosn decided to resign as CEO of Nissan, yet remain chairman. In 2018, based on an unanimous vote, Ghosn was dismissed as chairman following his arrest after allegations of embezzlement on his part surfaced. In January of 2019, Ghosn was still supported by Macrons French Government and Renault Inc. – until later having Ghosn retire following the longing of his case. Ghosn was later ‘rearrested’ on grounds of financial misconduct, after which he was removed from Nissans board completely.
He eventually was let go under bail – until new accusations framed his involvement in a suspicious over-reporting of expenses for Renault Inc. Ghosn was then investigated in Tokyo, and his request for bail denied – having forcefully been put under house arrest, with none to contact (including his wife, Carole, who reportedly did not contact him for four months).
Ghosn's expressions spark a media burst amidst his first press conference in Beirut following his flee from Tokyo. Photo Credit – Financial Times; Peter Campbell, Leo Lewis and Chloe Cornish @AFP
On the 30th of December 2019, reports began escalating that Carlos Ghosn had led prosecution in Tokyo and escaped to Beirut, Lebanon. This hearsay was later confirmed by Ghosn’s team – and Ghosn himself in a press conference in Beirut, on the 8th of January 2020. Moreover, Interpol issued a red notice warrant for Ghosn (now identifying him as a fugitive) – and upon arriving to Beirut, Ghosn’s passport was confiscated, and a travel ban was imposed on him.
Furthermore, the former businessman’s press statements revolved around imputing these allegations on rampant discrimination of foreign officials in Tokyo, and human right violations – which came shocking to many as he was a beloved public figure in Japan (one who had various books and cartoons written and drawn about him). On the 30th of January of 2020, Japanese prosecutors issued arrest warrants against USASF Michael Taylor, his son Peter, and a Lebanese-American George Zayek – on the grounds of engineering Ghosn’s escape plan.
A choice between diplomatic ties, the IMF, and Ghosn
It’s important to know that Lebanon is not under any strict diplomatic obligation to send Ghosn back to Tokyo, as Lebanon does not have any shared extradition agreements with Japan (and Lebanon is notoriously known for not extraditing residents). Yet, in March, Japan and Lebanon agreed to discuss an extradition treaty where Japans Deputy Justice Minister, Hiroyuki Yoshiie, trusted for Lebanon to “cooperate” on the basis of Ghosn’s case: implying that Lebanese authorities must send him back to Tokyo, where a public trail awaits him. In May of 2020, the United States Army Special Forces soldier, namely Michael Taylor, was arrested at his home for aiding and orchestrating the entire escape plan.
Fast-forward to June of 2020, reports surfaced around Lebanon’s struggle to request for IMF loans – reports that were indirectly confirmed by head of the International Monetary Fund, Kristalina Georgieva, on the basis of Lebanon’s inability to subdue political, sectarian and governmental conflicts and implement legislative reforms. In the span of days, the well known media news outlet “Arab News” released a voice recording of Sakher El-Hachem, Nissans Lawyer in Lebanon, admitting that an IMF loan to Lebanon would be dependent on Carlos Ghosn’s extradition to Japan. Furthermore, on July 31st, Ghosn’s aide, Greg Kelly, was set to stand in trial on September 15th, to testify about his role in hiding Ghosn’s Nissan compensation records.
Furthermore, this opens the door on other questions that have yet to be answered: Is Lebanon the new prosecution fleeing hub for businessmen who are convicted/accused of financial misconduct?
Why hasn’t Ghosn fled to other countries, like Cambodia or even Brazil, who do not extradite? Why isn’t Lebanon extraditing Ghosn?
These questions are perhaps many of which question the statements made by Ghosn – who pleads not guilty. Perhaps it was his belonging to Lebanon – that deemed his speedy escape to the country genuine – or perhaps it was of a nature larger than that.
References
https://www.autonews.com/executives/japan-lebanon-agree-discuss-extradition-treaty
https://www.arabnews.com/node/1682936/business-economy