Tokyo Court Denies Nissan Ghosn's Latest Bail Request

Warta Ekonomi, Tokyo -

The Tokyo District Court denied former Nissan Motor Co Ltd Chairman Carlos Ghosn's request for release on bail after his indictment last week on two new charges, making it likely the once-feted executive remains jailed for months.

Lawyer for Ghosn have appealed the decision and could receive a response within the next day. Ghosn awaits a lengthy criminal trial that could be as long as six months away, his lawyer said. It is rare in Japan for defendants who deny their charges to be granted bail ahead of trial.

The executive has remained in a detention center in Tokyo since Nov. 19 when he was first arrested on allegations of under-reporting his salary for five years through 2015.

Read More: Nissan's Ghosn Claims Innocence

The court did not give a reason for denying bail. At a hearing last week when his lawyers asked for reasons for his continued detention, the court cited concerns that Ghosn would try to flee or tamper with evidence. He was indicted on charges of aggravated breach of trust for temporarily transferring personal investment losses to Nissan in 2008 and understanding his salary for three additional years through March 2018. He has denied the charges.

His arrest sent shockwaves through the auto industry and rocked Nissan's alliance with Mitsubishi Motors Corp and France's Renault SA.

Ghosn who mastermind Nissan's financial turnaround two decades ago has since been removed from chairmanship positions at Nissan and Mitsubishi, but remains chairman and chief executive at Renault. The French government, Renault's biggest shareholder, said it supports Renault's decision to keep Ghosn at its helm unless it becomes clear he will be "chronically incapacitated" by the Japanese investigation.

The prospect of a lengthy detention could increase pressure on the Renault board and shareholders including France's government to appoint permanent new leadership for the carmaker.