Report: Nissan Paid “Huge Sums” for Ghosn Homes

Nissan Motor Co. provided Chairman Carlos Ghosn with costly and unreported residences in Amsterdam, Beirut, Paris and Rio de Janeiro, according to NHK, Japan’s national public broadcasting network.

Sources tell the TV service that Nissan didn’t disclose that it had furnished Ghosn with the homes, none of which has a “legitimate business reason.” NHK says Ghosn did not contribute to the cost of any of the residences.

The Nikkei reports that a Dutch subsidiary of Nissan spent nearly $18 million for the homes in Beirut and Rio. The unit was formed several years ago with 6 billion yen ($53 million) in Nissan capital. At the time, Nissan said the unit was created to invest in startups. But the newspaper says there is little evidence to show it has served that purpose.

The report comes as news media and investors look for details to explain why the highly regarded executive was arrested on Monday on suspicion of financial misconduct. He is expected to be removed from the chairmanship on Thursday. Nissan says the move followed a months-long investigation that turned up significant but unspecified wrong-doing.