Ousted Nissan chairman Ghosn paid company funds to Saudi businessman

New charges against Carlos Ghosn claim the ousted Nissan chairman used company funds to pay a Saudi businessman for a personal favour, it has been revealed.

Ghosn, who was arrested for a third time last week, is alleged to have paid $14.7m (£11.6m) in four instalments to Khaled Al-Juffali, the vice chairman of the EA Juffali and Brothers conglomerate – one of Saudi’s biggest – sources told Reuters.

Prosecutors did not identify the person they say received the money in Nissan funds between 2009 and 2012.

The payments were made after the person helped Ghosn transfer losses from his personal investments to the carmaker.

“By doing so, [Ghosn] behaved in a way that breached trust, and inflicted damage on the property of Nissan,” prosecutors said in a statement.

Al-Juffali did not comment to Reuters. Ghosn has denied the allegations to other media.

Prosecutors said: “We cannot comment on matters related to Ghosn’s arrest for breach of trust. Nissan’s own investigation is ongoing, and its scope continues to broaden.”

The latest arrest is the first that prosecutors have levelled at Ghosn alone. Previous charges of under-reporting his compensation were also levelled former representative director Greg Kelly. Kelly and Ghosn have claimed innocence.

Ghosn hoped he might be released on bail last week after a judge ruled prosecutors could no longer hold him on the old charges. However his hopes were dashed on Friday when he was re-arrested.

Nissan, which is running its own investigation into Ghosn and Kelly’s activity has said it found multiple instances of possible wrongdoing.