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Ghosn flight prompts renewed focus on Japan's strict justice system

TOKYO — Carlos Ghosn's daring flight from Japan, where he was awaiting trial on charges of financial wrongdoing, has revived global criticism of the nation's "hostage justice," but in Japan is prompting talk of reversing more lenient curbs on defendants. The ousted boss of Japan's Nissan and France's Renault fled to Lebanon, saying on Tuesday that he had "escaped injustice" and would "no longer be held hostage by a rigged Japanese justice system." Ghosn was first arrested in November 2018 when his private jet landed in Tokyo and kept in jail for more than 100 days as prosecutors added more charges, all of which he has denied. He was released on $9 million bail in March — only to be arrested and bailed again the following month. He was facing four charges, including underreporting his Nissan salary and transferring personal financial losses to his employer's books while he ran Japan's No. 2 automaker. His apparent escape from Japan's legal system — Tokyo and Lebanon don't have an extradition treaty — will likely halt or even reverse a trend of recent years toward granting bail in more cases, said Colin Jones, a law professor at Doshisha Law School in Kyoto. “I would expect it to be more difficult for foreign defendants to get bail,” Jones said. In Japan, suspects who deny the charges against them are often detained for long periods and subject to intense questioning without a lawyer present, a system critics call "hostage justice." Japanese civil rights groups and the main bar lawyers association have long criticized a system that convicts 99.9% of criminal defendants. They say it gives too much power to prosecutors, who can detain suspects for long periods before indictment, and relies too much on confessions, some later found to have been forced and false. Ghosn's escape is clearly a shock to Japan's legal establishment. "This case raises the extremely serious issue of whether it's all right to continue the trend toward bail leniency," said former prosecutor Yasuyuki Takai. "The legal profession and lawmakers need to quickly consider new legal measures or a system to prevent such escapes," Takai, who was formerly with the special investigation unit of the prosecutor's office, told public broadcaster NHK.

Renault, Nissan limit French government interference

Renault and Nissan are taking action to limit the influence that one can exercise over the other's operations. The measures, announced by both automakers after meetings of their respective boards in Paris and Tokyo, aim to keep each other at arm's length. But more than that, they seek to cap the degree of influence which the French government can bring to bear on either automaker. The steps are being taken in response to investment moves by the French state. While the government's investment arm – known as the Agence des Participations de l'Etat (or state participation agency) – previously controlled 15 percent of Renault's shares, it increased its holdings this April to 19.73 percent. The action sparked concerns at Renault that the French government would attempt to dictate operating procedures to both automakers, potentially to favor production in France over other locations. Given that Renault holds a 43-percent stake in Nissan, the Japanese automaker grew concerned over potential French state interference as well. To assuage those concerns, Renault, Nissan, and the French government came to an agreement with three vital clauses. Most importantly, despite its nearly 20-percent holdings, the French government will be granted only 17.9 percent of voting rights in Renault (to be extended up to 20 percent under certain exceptional circumstances). Renault (and by extension the French government) will also be prevented from interfering in Nissan's governance. With those measures in place, Nissan will not seek more voting rights based on the 15-percent stake which it, in turn, holds in Renault. Having successfully concluded the deal and hedged against the threat of government interference, the Renault board reasserted its confidence in Carlos Ghosn. Through the unique terms of their alliance, Ghosn serves as chairman and CEO of both Renault and Nissan. The two cooperate closely and share resources extending far beyond their chief executive, but remain distinct companies rather than merge, as Fiat and Chrysler have. Renault Board approves alliance stability covenant between Renault and Nissan As early as 16th April 2015, the Renault Board of Directors unanimously reiterated that the sustainability, success and resilience of the Alliance since its very inception in 1999 were based on a balance of shares held by Renault and Nissan.

Japan court adds 10 more days to Ghosn's detention

A Japanese court on Sunday extended for 10 days the detention of ousted Nissan chairman Carlos Ghosn, who is facing new allegations of making the car maker shoulder $16.6 million in personal investment losses. The extension announced by the Tokyo District Court means Ghosn will remain in Tokyo's main detention center, where he has been confined since his arrest last month on initial allegations of financial misconduct. Ghosn was re-arrested on Friday based on suspicions that around October 2008 he shifted personal trades to Nissan to make it responsible for 1.85 billion yen ($16.6 million) in appraisal losses, prosecutors said. They said the move inflicted damage on Nissan by having it deposit a total of $14.7 million on four occasions between June 2009 and March 2012 into a related bank account. (Reporting by Daniel Leussink; editing by Darren Schuettler)Related Video: Government/Legal Hirings/Firings/Layoffs Nissan Renault