The case of former Nissan boss Carlos Ghosn for financial irregularities is also a test of the Japanese legal system
Carlos Ghosn, the former Chairman of Japanese car manufacturer Nissan and one of the only rockstars among senior managers in the automotive industry, spent the New Year in a small cell in a Japanese prison. In fact, it is almost a month since the one-time high-flyer with homes in several cities across the world has given up his life of luxury for prison austerity. He has been accused of financial wrongdoing, by hiding his true income and using company funds for personal enrichment. It is rather strange that the man who will be remembered as the saviour of Nissan, Japan’s third-largest carmaker, from oblivion as well as building the Renault-Nissan alliance as a truly global automotive behemoth will leave the stage potentially discredited.
One says potentially because Ghosn is yet to be prosecuted and while he has been charged by the Japanese authorities on several different counts, his trial could take a year or longer and he could spend the entire time in prison. This naturally has led to criticism of the Japanese judicial system as Ghosn has not been given bail, which is strange. While the authorities in Japan might consider Ghosn a flight risk, he remains Chairman of Renault. At the same time it is impossible for such a public figure to disappear and Ghosn could easily be put under house arrest. But the Japanese legal system treats undertrials quite harshly, because while it is inspired by Western jurisprudence, it still retains elements of justice from Japan’s imperial past. And while Ghosn can apply for bail in a couple of months, given how his previous applications were rejected, he could spend over a year in jail, possibly remaining imprisoned until his trial is completed. Ghosn’s family has been worried about his health, as any family of an undertrial would, and both his physical and mental well-being. But the Japanese authorities are right in that he should not expect any special treatment because of his celebrity status.
However, they should be humane and allow him more contact with his family. And justice must be done one way or another. Japan’s legal system is still highly shrouded in secrecy, the way that nation carries out executions for example. Ghosn’s trial will be a trial of the Japanese judicial system as well and right now, while it is not looking good for Ghosn, it is not looking great for the Japanese system either.
