Carlos Ghosn's escape from Japan is a nightmare for the country's justice system

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Carlos Ghosn's escape from Japan is a nightmare for the country's justice system
Former Nissan chairman Carlos Ghosn, center, arrives at Tokyo District Court for a pre-trial meeting in Tokyo Thursday, May 23, 2019. Ghosn, who is out on bail, has been charged with under-reporting his post-retirement compensation and breach of trust in diverting Nissan money and allegedly having it shoulder his personal investment losses., lawyer of (Ren Onuma/Kyodo News via AP)

On Monday, former Renault-Nissan-Mitsubishi chairman escaped from Japan, where he had been in legal limbo, released from jail but awaiting trial for financial malfeasance and unable to travel.

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Various reports suggested that Ghosn had fled Japan through Turkey. His ultimate destination was Lebanon, where he lived as a child, has citizenship, and is a business celebrity.

"I am now in Lebanon and will no longer be held hostage by a rigged Japanese justice system where guilt is presumed, discrimination is rampant, and basic human rights are denied, in flagrant disregard of Japan's legal obligations under international law and treaties it is bound to uphold," Ghosn said in a statement.

"I have not fled justice - I have escaped injustice and political persecution. I can now finally communicate freely with the media, and look forward to starting next week."

Trapped in Japan while the alliance crumbled

Carlos Ghosn Nissan GTR

Ghosn was arrested in Japan in late 2018, alongside Greg Kelly, a member of Nissan's board of directors. Imprisoned for months, he was eventually released, but then re-arrested (he's been arrested a total of four times). He had promised to hold a press conference in April, but he was arrested before that took place; Ghosn's lawyers later released a video in which he declared his innocence and labeled his arrest a "conspiracy" and declared that Nissan's leaders were threatened by his assessment that their performance had been poor and had played a "dirty game."

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He then posted millions in bail and has been in Japan ever since.

While all this was going on, the Renault-Nissan-Mitsubishi alliance that he created was falling apart. Renault flirted with a merger with Fiat Chrysler Automobiles, and Nissan replaced its CEO, a Ghosn acolyte who had assumed control after Ghosn's arrest.

Last December, I broke down the two main theories as to why Ghosn, an auto-industry rock star, had been arrested in the first place. They're still more or less valid, but Ghosn's escape adds a new dimension.

Theory number one is that Ghosn did everything he's been accused of, but that for years Nissan and Renault - a complicated, multinational colossus - looked the other way. Ghosn has long been a celebrity CEO in the auto industry, and although his star has dimmed in recent years as he eased toward retirement, it was widely thought by conjoining Renault and Nissan, then adding struggling Mitsubishi, he has pulled off the impossible.

The "palace coup" theory

Carlos Ghosn

Number two is that a "palace coup" was executed at Nissan, and that the Japanese carmaker wants to either shatter the alliance or revamp Renault's outsized influence. Renault owns 43% of Nissan, yet Nissan contributes most of the profits to the tripartite entity. Renault recently affirmed Ghosn's role as chairman and CEO and concluded that he didn't do anything wrong.

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Parts of both theories are probably right. Ghosn was imperious and had enemies. He wasn't a kinder, gentler auto executive. He brandished his accomplishments and his position.

The investigations and indictments that followed Ghosn's arrest and later detention revealed a web of unusual financial dealings, but they didn't exactly make Ghosn into a criminal mastermind. Rather, they indicated that Ghosn has amassed of lot of perks in his two decades at the alliance and did things his own way. My impression was that much of this was OK until it suddenly wasn't.

"Having watched Ghosn in action for over a decade, I think it's unlikely he'd admit any wrongdoing," I wrote last year. "He's typically rather brusk and to-the-point, and he's far enough along in his career that he might not actually care if he comes off as a Machiavellian global plutocrat, bending every rule in the book while arguing that his ends justify his means."

What's new in all of this is that Ghosn can now presumably take his defense to an eager media. He is not going to go gentle into any good Beirut nights.

A reckoning for Japan's justic system

Carlos Ghosn

Nor should he. While we certainly learned that under his control, the Renault-Nissan-Mitsubishi alliance resembled less a multiheaded manufacturing colossus and more a Byzantine empire for the globalism age, with courts on multiple continents accounting that would have impressed Machiavelli, we also learned that getting arrested in Japan isn't like getting arrested in America or Europe.

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My initial thought when I heard that Ghosn had shown up in Lebanon was, "Of course!" With his first arrest over a year old and the wheels of Japanese justice turning slowly, if at all, it didn't seem outrageous to conclude that the Japanese authorities might have wanted him gone. A Renault-Nissan merger that Ghosn had reportedly pushed for was dead, a trial was likely to be messy for the Japanese. He could rail away from Lebanon, but gradually their whole affaire Ghosn would fade into memory.

The full story won't emerge until Ghosn tells it himself, but now it appears he had to engage in some heavy intrigue to flee Japan and that all bets are off. Not only will the Japanese not get a trial - Lebanon doesn't permit extradition of its citizens - but Ghosn is obviously planning to put the entire Japanese justice system itself on trial.

As he should. His lengthy and by all accounts arduous imprisonment was in no way justified by allegations of white-collar crime. His escape shows that the Japanese authorities were concerned above all about his getting out of the country from the beginning. Given all that's emerged about his financial maneuverings, his innocence is debatable even if none of it turns out to be illegal.

But his inability to defend himself as the presumption of guilt was amplified made it increasingly difficult to assume that whatever trial he got would be fair.

Ghosn has to explain himself, and that should be interesting, to say the least. But pretty soon, we're finally going to hear his side of the story, in detail.

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This is an opinion column. The thoughts expressed are those of the author(s).

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