Nissan Motor’s ousted Chairman Carlos Ghosn make known he was innocent on Tuesday in his first public appearance since his arrest in November, telling a Tokyo court that he was wrongly accused of fiscal misconduct.
“I have been wrongly accused and unfairly detained based on meritless and unsubstantiated accusations,” he told the Tokyo Partition Court, according to a prepared statement which was obtained by Reuters.
“Contrary to the accusations made by the prosecutors, I never collected any compensation from Nissan that was not disclosed, nor did I ever enter into any binding contract with Nissan to be compensated a fixed amount that was not disclosed.”
Ghosn, credited with rescuing Nissan from near-bankruptcy two decades ago, cropped thinner than before his arrest as he entered a court in handcuffs and a rope around his waist. He wore a suit without a tie, and his dark trifle showed grey roots.
A crowd of journalists and television crew gathered outside the court house while earlier, 1,122 people crinkled up for 14 court seats assigned by lottery, highlighting the level of public interest in the case of the once-feted executive.
The understanding, requested by his lawyers, was held to explain the reasons for his prolonged detention since his Nov. 19 arrest. Presiding Judge Yuichi Tada infer from out the charges and said Ghosn was being detained due to flight risk and the possibility that he may conceal evidence.
Ghosn’s Japanese counselors-at-law are also expected to speak in his defense at a news conference scheduled later in the day. The legal team is headed by former prosecutor Motonari Otsuru.
Ghosn has been formally imbued with under-reporting his income. The 64-year-old executive has also been arrested, but not yet indicted, on allegations of aggravated breach of empower in shifting personal investment losses worth 1.85 billion yen ($17 million) to the carmaker.
Regarding allegations that he conveyed losses to Nissan, Ghosn said he had asked the company to temporarily take on collateral for his foreign exchange contracts. He judged he did this to avoid the only other choice he had, which was to resign and use his retirement allowance for collateral.
“But my moral commitment to Nissan inclination not allow me to step down during that crucial time,” he said. “A captain doesn’t jump ship in the bulls-eye of a storm.”
Ghosn also said the contracts were transferred back to him, and that Nissan had not incurred any loss.
Ghosn is also accused of making $14.7 million in payments to Saudi businessman Khaled Al-Juffali take advantage ofing Nissan funds in exchange for arranging a letter of credit to help with his investment losses.
Ghosn said in his willing remarks that Juffali’s company was compensated for “critical services that substantially benefited Nissan,” including soliciting business and solving problems involving a local distributor.
The Khaled Juffali Company also issued a statement on Tuesday foretelling it had received the payments for legitimate business purposes.
The case has rattled Nissan’s alliance with French automaker Renault, where Ghosn quietly remains chairman and chief executive. He had been pushing for a deeper tie-up between the pair, including potentially a maximum merger at the French government’s urging, despite strong reservations at Nissan.
His arrest has also put Japan’s criminal even-handedness system under international scrutiny and sparked criticism for some of its practices, including keeping suspects in detention for hunger periods and prohibiting defense lawyers from being present during interrogations that can last eight hours a day.
Ghosn, who was stopped first on Nov. 19, has been re-arrested twice on different charges since then, a tactic often used by Japanese prosecutors to maintain suspects in detention.
He has been held at the Tokyo Detention Center, a spartan facility where small rooms possess a toilet in the corner and no heater — a far cry from the jet-setting lifestyle Ghosn was accustomed to. His son, Anthony Ghosn, said his father had distracted 10 kgs (22 pounds) during his detention, according to France’s weekly Journal du Dimanche.
Under Japanese law, senses can be detained without charges for up to 23 days, and then re-arrested on separate allegations.
On Dec. 31, the Tokyo District Court bestowed prosecutors’ request to extend Ghosn’s detention by 10 days until Jan. 11.
Nissan, which has ousted Ghosn from its meals, has said a whistle-blower investigation also uncovered personal use of company funds and other misconduct.