Published: Sun, February 10, 2019
Finance | By Loren Pratt

Renault to alert prosecutors over ex-CEO Ghosn's wedding costs

Renault to alert prosecutors over ex-CEO Ghosn's wedding costs

"The elements gathered so far require additional checks to be carried out", it said, adding that "Renault has chose to bring these facts to the attention of the judicial authorities".

In a statement, the French auto manufacturer says that after compliance audits were initiated on November 23, 2018, it discovered that a €50,000 contribution was allocated to Ghosn's personal benefit as a charitable donation with the Château de Versailles where his wedding was held.

Renault says it's investigating how former chief Carlos Ghosn paid for a lavish wedding reception at France's Palace of Versailles.

Ghosn threw an extravagant Marie Antoinette-themed wedding party at Versailles to celebrate his second marriage which featured actors in 18th-century clothing.

Under the terms of the deal, Renault could benefit in return from Versailles access and other services worth a maximum 25 percent of the deal, in this case around 575,000 euros, it said.

"Renault did not spend anything", he said in a statement, adding that Ghosn "did not know that the use of the hall would be accredited to Renault's usage rights". The French government holds a 15-percent stake in Renault, indirectly having an influence over Nissan.

"The audit at Renault has begun and is starting to show results", he said at business fair in Paris.

The finding was part of an internal probe and marked the first time Renault has disclosed possible improprieties by Ghosn, who remains in a Tokyo jail after allegations of financial crimes were brought against him by Japanese prosecutors. "Contrary to the accusations made by the prosecutors, I never received any compensation from Nissan that was not disclosed, nor did I ever enter into any binding contract with Nissan to be paid a fixed amount that was not disclosed".

"Is it a trap?" It's obvious: it's a story of betrayal.

The French carmaker had previously said its internal investigation had found no evidence of wrongdoing by the former boss.

Renault initially stood by Ghosn, but named a new CEO and chairman last month to replace him as his Japanese legal case drags on.

Ghosn was the linchpin of the three-way alliance, earning industry plaudits for driving together a sometimes fractious threesome with headquarters 10,000 kilometres apart.

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