Sources at Nissan Motor are reportedly telling Tokyo prosecutors that former chairman Carlos Ghosn ordered payments to be made to a Nissan dealership in Oman and they later invented reasons for the transactions.
The prosecutors arrested Ghosn for a fourth time on Thursday on suspicion of an aggravated breach of trust that caused a loss of 5 million dollars. Ghosn allegedly used some of the money that was sent to the dealership for personal purposes.
The sources reportedly say that Nissan transferred about 34 million dollars as sales promotion expenses from an account referred to as the "CEO reserve."
They also told prosecutors that Ghosn ordered the payments and they later made up the reasons for the transactions.
The sources say the payments were clearly strange as sales promotion expenses had already been paid to the Omani dealership from the official budget.
Ghosn is denying all the charges against him, saying the payments were requested by Nissan officials and were made appropriately.
On Friday, the Tokyo district court allowed a 10-day extension of Ghosn's detention until April 14. His lawyers plan to file an appeal.