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Tokyo's prosecutors set to decide on Carlos Ghosn's detention

File photo of Carlos Ghosn. Photograph:( AFP )

Reuters Tokyo, Japan Dec 30, 2018, 07.09 AM (IST)

Tokyo prosecutors are set to decide on the detention of former Nissan Motor Co Ltd Chairman Carlos Ghosn on Tuesday for financial misconduct.

Ghosn was arrested for allegedly conspiring to understate his income by about half of the actual 10 billion yen ($88.66 million) over five years from 2010. His deputy, Greg Kelly, who was accused of assisting, was released from Tokyo Detention Centre on December 25.

Ghosn was re-arrested on December 21 for aggravated breach of trust in transferring personal investment losses to the automaker.

The prosecutors' statement said they believe that around October 2008, Ghosn was trying to deal with losses on paper of 1.85 billion yen (£13.15 million or $16.6 million) incurred on a swap contract he had with a bank which it did not name.

On January 1, the prosecutors need to decide whether they will indict, release, or re-arrest Ghosn on new claims. Ghosn previously said through his lawyer that he was not guilty of the allegations, for which he has not been formally charged.

The November 19 arrest of Ghosn shook the foundations of the Renault-Nissan alliance and stunned the auto industry, where Ghosn is renowned for turning around the French and Japanese carmakers. Ghosn remains chairman and chief executive of Renault SA.

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Ghosn was re-arrested on December 21 for aggravated breach of trust in transferring personal investment losses to the automaker.