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Prosecutors set to indict Ghosn and Nissan as CEO's role in focus-sources

In This Article:

* Prosecutors to indict Nissan, Ghosn on Monday -sources

* Ghosn to also be re-arrested, remain in custody - sources

* Concerns at Nissan that CEO Saikawa may be indicted -source

By Norihiko Shirouzu

TOKYO, Dec 10 (Reuters) - Tokyo prosecutors are due to indict ousted Nissan Motor Chairman Carlos Ghosn as well as the automaker itself on Monday, sources said, intensifying scrutiny of CEO Hiroto Saikawa's role in the financial misconduct scandal.

Ghosn was arrested on Nov. 19 on suspicion of conspiring to understate his compensation by about half of the actual 10 billion yen ($88 million) over five years from 2010. Nissan has said the misconduct was masterminded by the once-celebrated executive with the help of former Representative Director Greg Kelly.

Tokyo authorities plan to re-arrest the two executives, the sources said, declining to be named as they were not authorised to speak with media. Media reports have said the fresh crime was for three additional years of under-reported income. The two would then remain in custody without bail.

Nissan itself is also likely to be indicted for making false statements in an annual report, they said. A separate source said there were concerns running through the company that Chief Executive Hiroto Saikawa and others may also be indicted.

Asked about a potential indictment of the company itself, Nissan said only that it was cooperating with the prosecutors' office and providing them with information related to misconducts.

Analysts have said it could be difficult for Nissan to avoid blame, whether it turns out that other executives had knowledge of Ghosn's misconduct, or that the company lacked adequate internal controls.

"Normally, if it's falsifying the financial filings, the company as well as the perpetrator is charged. That's not surprising. It's to be expected," said prominent lawyer and former prosecutor Nobuo Gohara.

"Now suddenly the issue of CEO Saikawa becomes bigger. It becomes difficult to overlook Saikawa's role in all of this. That becomes the main focus now."

Ghosn and Kelly have not made any statement through their lawyers, but Japanese media reported that they have denied the allegations. Calls to Ghosn's lawyer, Motonari Otsuru, at his office went unanswered, and the Tokyo prosecutors' office said it could not comment on individual cases.

NISSAN ON OFFENSIVE

Nissan has stepped up its offensive against the executive once credited for rescuing the company from near-bankruptcy.

The company said on Sunday that it was seeking to block access by Ghosn's representatives to an apartment in Rio de Janeiro, citing a risk that the executive may remove or destroy evidence.