Carlos Ghosn scandal: Bill for lavish dinner faces Renault scrutiny | Business News


Carlos Ghosn is facing fresh financial misconduct scrutiny – this time relating to the costs for a lavish dinner following his wedding.

The fallen automotive executive is currently in a Japanese jail cell awaiting trial on charges related to his dealings at Nissan.

Ghosn used to hold the top positions at Nissan, Renault and Mitsubishi until they removed him from the heart of their three-way partnership.

Renault levelled its first allegation of wrongdoing at him on Thursday.

Ghosn was chairman of both Nissan and Renault until both subsequently replaced him

The French carmaker said it had asked judicial authorities to investigate his role in a sponsorship arrangement with the Palace of Versailles.

The announcement followed claims in the newspaper Le Figaro that Versailles – once home to the fallen French monarchy – allowed Ghosn to host his 2016 wedding reception on its grounds in exchange for donations.

Versailles has admitted a €2.3m (£2m) sponsorship arrangement with the company, which allowed Renault benefits from the palace worth up to 25% of the donation.

It added that the deal meant Renault was granted permission to rent out space in the Grand Trianon mansion for a “dinner” on 8 October.

That was the month when Ghosn held a party at the palace to celebrate his wedding and his bride’s birthday.

The palace estimated the dinner was worth €50,000 (£43,787 at today’s rates).

Renault said its internal investigation found that Ghosn personally benefited from “an exchange worth €50,000 in the framework of a philanthropic accord” with Versailles.

Ghosn’s lawyers are yet to comment but he has previously denied all the allegations against him.

He was first arrested in November as Japanese prosecutors examined a series of claims, including that he had under-reported his income and misused Nissan funds.

Ghosn has pledged to clear his name in court and says he is the victim of a corporate conspiracy.

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