Private-sector test results to account for 20% of national university English entrance exam scores

Abstract: The Japan Association of National Universities (JANU) has adopted its new English proficiency benchmarks for entry into state-run universities, which now measure English speaking and writing skills, giving high school students a better grasp of the language before entering college. The new standard approved by JANU on Tuesday, stipulates that scores on private-sector English tests that assess across-the-board English skills, such as the TOEFL (Test of English as a Foreign Language), should ideally account for at least 20 percent of the English proficiency assessments used for university admission. The benchmark, which will be introduced in January 2021, is not binding, meaning the degree to which private-sector test results are incorporated may vary among universities, association members said at JANU’s general assembly held Tuesday in Tokyo’s Chiyoda Ward. The existing unified English exam, called the National Center Test for University Admission, uses computer-read answer sheets and mainly measures reading and listening skills. Under the 2020 university admission reforms, the entrance exam will be renamed the Common Test for University Admission, and those hoping to enter universities will be required to also take private-sector English tests that assess speaking, writing, listening and reading levels. The association adopted its policy last November on assessing English proficiency with both the Common Test and private-sector tests between the 2020 and 2023 academic years. From 2024 onward, only private-sector test results will be used. “We place importance on the holistic evaluation of four different English skills … however, on the other hand, high schools have expressed concern that a high ratio (in test scores) focused on those four skills would be troublesome,” said Masaaki Oka, president of Yamaguchi University and vice president of JANU, at a news conference following the general assembly. “We believe that 20 percent is an appropriate weight for helping students (to focus on the four different skills) to some extent, and we can always increase the level in the future,” he added. Amid various entrance exam reforms proposed by the Education Ministry, the weight of private-sector English tests has been a major topic of discussion because too high a weighting could be seen as unfair to students from lower-income households. Prices for the eight accredited private-English tests range from about ¥7,000 for the Global Test of English Communication to around $235 (¥26,000) for the TOEFL. Six other English tests are available, including the Cambridge Assessment English and Eiken. High school students in their third year and other university hopefuls can choose to take any of the permitted English tests up to two times between April and December. Their scores will then be standardized by the Common European Framework of Reference for Languages (CEFR), which categorizes the results into six different levels. Those private-sector English test results will also be used as a qualification benchmark for applicants to universities. For example, JANU said that students who scored at least A2 — the second lowest English proficiency level given by CEFR — should be eligible to apply for national universities. Juichi Yamagiwa, president of Kyoto University and JANU, said he hopes that introducing assessments of the four different skills will contribute to the raising of English education levels in high schools. “(University standards) are not unrelated to high school education levels, so it is necessary to pursue (admission) reforms for their improvement,” he said.


Two men arrested in connection to woman's body abandoned on mountain in Shizuoka Prefecture

Abstract: SHIZUOKA - Two men have been detained in connection with the abandonment of a woman’s body, which was confirmed Tuesday to be that of a nurse who went missing last month, police said. The men, one in his 20s and another in his 40s, were arrested on suspicion of illegally confining Mayuko Uchiyama, a 29-year-old nurse from Hamamatsu, Shizuoka Prefecture. Security camera footage showed Uchiyama being abducted by several men in a gym parking lot in the city on May 26 as she was getting into her car, which was also driven away, according to investigative sources. The man in his 40s, who turned up at a police station in Nagoya on Monday, has admitted to the allegation of abducting a woman he did not know in Hamamatsu, the investigative sources said. Uchiyama’s body was found Saturday on a mountain in Fujieda, Shizuoka Prefecture, police said, adding there was no sign of major injury. She appeared to have died about two weeks earlier. Police tracked the record of the car navigation system in Uchiyama’s car, which was found in Kuwana, Mie Prefecture, about 100 kilometers northwest of Hamamatsu.


Japan's social security net for transgender people improving but obstacles loom for seniors

Abstract: People diagnosed with gender dysphoria in Japan are getting more support from social security, including the ability to have the names they usually go by printed on their health insurance cards and to get coverage for gender reassignment surgery under certain conditions. But even as greater consideration is shown toward transgender individuals, problems still loom for them in old age, including pension payouts that might be altered by transitioning and potential problems receiving appropriate nursing care. Last year, the Health, Labor and Welfare Ministry notified prefectures that people with gender dysphoria can have the names they go by printed on their health insurance cards if they submit a medical certificate issued by a doctor and other documents. Since April, transgender individuals have been covered by insurance for sex reassignment surgery as long as they are not receiving hormone treatment, among other conditions, lowering medical costs. Transgender man Aki Nishino, 32, officially changed his name after feeling distress when called by his former female name during hospital consultations. “It was harsh when people would just say, ‘You’re a woman’ to my face or look at me in a bizarre way,” Nishino said. He filed for the name change in court, taking a unisex Japanese name instead. “There are people who are unable to change their names because of the wishes of their family or other reasons. I welcome being able to use a new name since it increases my options,” Nishino said. Takamasa Nakayama, who works in Tokyo, said people were always suspicious that he was using someone else’s insurance card before he had sex reassignment surgery and changed his family registry. Nakayama also welcomes the added support from social security. “There are cases where health conditions worsen because people want to avoid the hassle of going to a hospital. This will be helpful for such people,” Nakayama, 45, said. But despite the improvements, there are still reasons for concern when addressing the social security net for transgender people as they age. For example, the earnings-related component of employee pensions is paid out later for men than for women, putting those born female at birth at a disadvantage if they have gender reassignment surgery before they reach retirement. Receipt of survivors’ pensions also differs by sex. “If you turn 60 and it is after your pension payouts have been decided, there wouldn’t be any influence from a sex assignment, but people have to be mindful of changes in the conditions even though they might have paid the same insurance premiums all this time,” said Koji Nakajima, a licensed social insurance consultant. Another difficulty is posed by nursing care for transgender seniors, which requires the use of separate rooms and the bathing of residents by gender. Transgender people worry their wishes will not be respected if they become senile or other illnesses prevent them expressing themselves anymore. “It’s necessary to have the flexibility to respond to individual wishes at these facilities. One way is leaving a notarized document with one’s wishes,” Kazuyuki Minami, a lawyer and legal expert knowledgeable about the challenges facing sexual minorities, said. Minata Hara, representative director for a national sexual minority support network, suggested establishing a nongender-based social security network. “Today’s social security system is based on sex. What we hope for is a structure that guarantees on an individual basis, not between the sexes,” Hara said.


Many of Japan's growing number of singles claim they are comfortable facing death alone

Abstract: In graying Japan, where a rising number of people are living alone, being single doesn’t necessarily equate to being lonely. More than 70 percent of single people in their 40s and above not only reject the idea of eventually tying the knot but claim they are satisfied with solitude and that they’re prepared for the autumn of life alone, according to findings by end-of-life consultancy firm Kamakura Shinsho Ltd. The company believes the outcome of an online survey in May of single people — including divorcees and widowers — in their 40s or older nationwide, reflects the rise of solo living and associated concerns about dying alone. “We’ve been receiving an increasing number of phone calls from people seeking advice on preparations for the end of life, and many people have been calling to book a gravesite,” the firm’s spokeswoman Yoshiko Enomoto said Thursday. “Now more people migrate to different areas within the country seeking jobs and end up alone more often than before. In the past more people would settle down in their hometowns, where they would live with their families that were much bigger than today.” “It also shows how living in the city is convenient for singles,” she noted, adding that many respondents said that living alone is much easier than being married. As many as 62.6 percent of the 444 single men and women who responded to the survey said they were doing their best to stay healthy, and about 40 percent said they were devoting their time to hobbies. Enomoto said that results also showed that many people were satisfied with their solitude, citing freedom to manage time and money without restrictions. She added that women pay more attention to their personal affairs before death, including closing their bank accounts and handing their belongings to others. One in five respondents said they were organizing their possessions in preparation for death, but the number for women was two times higher than it was for men. Kazuhisa Arakawa, the author of “Super Solo Society,” which depicts societal problems surrounding the emergence of solo lifestyles, believes that men, in particular, who claim they’re fine with facing death alone may change their minds when they get older. Women are more capable of dealing with death alone because they typically live longer than men, said Arakawa, who researches solitude in Japanese society for PR firm Hakuhodo Inc. In the survey, more than half are comfortable with the idea of being single in the after life. “But the level of awareness differs between men and women,” Arakawa said. “A majority of survivors who fall ill after the death of their loved ones are men … And a larger number of male survivors tend to die by suicide compared to their female counterparts,” Arakawa said. “Men are too naive and don’t give deep thought to their death … Or even more to their current lifestyles. They just don’t think they might eventually be alone. “Japanese men simply depend (too much) on their wives and children. Women are more capable of building personal connections, and are thus more independent.” Arakawa estimates that by 2035, half of people over 15 years of age will be single and about 40 percent will live alone. According to the Ministry of Health, Labor and Welfare, there were 13.43 million solo dwellers in Japan as of June 2016. The government-run National Institute of Population and Social Security Research estimates that one-person households will total 39 percent by 2040. Kamakura Shinsho’s Enomoto also believes it is necessary to improve services for singles and offers to help municipalities with administrative procedures such as handling pension funds. “Even if the deceased are allowed to benefit from public funeral services, people who die alone may not have anyone to arrange it,” Enomoto said of the need to improve support for those living in solitude so that they can approach their death with a sense of security. “I think Japan is not offering enough support yet,” she added.


New graduates hope for work-life balance rather than boardroom role

Abstract: Working long hours to move up the job ladder is a lower priority for newly employed graduates in the nation, according to a recent survey published by the Japan Productivity Center (JPC). The 50th edition of the annual research, released Thursday, showed that over 40 percent of young hires work in order to “live an interesting life” — a roughly 15 point increase from 20 years ago — while only 10.3 percent of new hires indicated that they aimed to secure a role as company president — a record low in the survey’s history. The results are part of a decades-long trend of new graduates placing a stronger emphasis on maintaining a work-life balance, in a clear departure from perceptions of past generations who put in long hours to move up the corporate hierarchy. “Promotion-oriented new workers have decreased over the years, not only for top jobs but also for other management positions,” said Mitsuru Shimomura, one of the researchers in charge of compiling the annual report, which polled 1,664 new graduates. Part of the lack of motivation to move up the corporate ladder may come from new hires’ increasing propensity to change employers. Rather than toil at one company and move up the ranks, graduates appear increasingly willing to test the job market for better opportunities. An April survey of new graduates conducted by Deloitte Tohmatsu Consulting Co. showed that new workers who wish to stay at their company indefinitely has decreased by about ten percentage points since 2015, standing at 53.8 percent in the 2018 survey. The JPC survey also showed that the motivation for new graduates to outperform their peers has dropped in recent years. Over 61 percent of respondents said that they are content to work similar hours to their peers, up from around 45 percent five years ago, while those who aimed to outwork their peers fell to about 30 percent. The pressure to outperform peers may have decreased in recent years due to stronger economic conditions and a shrinking labor force, a situation that has given many workers the upper hand over employers. The jobs-to-applicants ratio was 1.59 in April, meaning there are 159 job openings for every 100 workers, according to data from the labor ministry. “The health of the economy is an important determinant of new graduates’ outlook,” said Shimomura. “Around ten years ago the economy was not good, so many people had a strong desire to work hard.” “Now that the economy is good it is a seller’s market, so to speak. Thus, there is less will to work hard,” he added.

employment presidents workforce surverys


Australian feral cats kill a million reptiles a day: study

Abstract: SYDNEY - Feral cats kill more than 1 million reptiles every day in Australia, a new study showed Monday, with the staggering slaughter threatening many species. Cats have wiped out entire populations of some animals in Australia since being introduced by Europeans settlers two centuries ago, with efforts to cull or sterilize them so far failing to slow their march. The new findings are based on more than 10,000 cat dietary samples contributed by environmental scientists across the country. In total, about 650 million lizards and snakes fall victim to feral and pet cats annually, they found. “On average each feral cat kills 225 reptiles per year,” said lead researcher John Woinarski, from Charles Darwin University, adding that feral cats consume more reptiles in Australia than in the United States or Europe. “Some cats eat staggering numbers of reptiles. We found many examples of single cats bingeing on lizards, with a record of 40 individual lizards in a single cat stomach.” The study, published in the journal Wildlife Research, showed cats were killing 250 different types of reptile — including great desert skinks, bearded dragons and geckos. Of these, 11 are threatened species. Feral cats in Australia number in the millions and are considered the main culprit behind the country’s high rate of mammal extinction. Research by the same team last year showed cats were killing more than 1 million birds in Australia each day, including threatened species like the spotted quail thrush, the squatter pigeon and the night parrot. While there is an undeniable impact, Australia’s Threatened Species Commissioner Sally Box said it was hard to pinpoint exactly how badly cats were affecting reptiles. This is because population sizes are not known for most reptile species. The government has earmarked more than AU$30 million ($23 million) for projects to reduce the impact of feral cats on wildlife. The Australian Wildlife Conservancy last month finished a 44-kilometer-long electrified fence to create a cat-free zone of almost 9,400 hectares in the desert. The area will be extended to around 100,000 hectares and will allow native animals that have been pushed to the brink of extinction by the predator to be reintroduced.


Aichi team develops self-driving robots to tackle labor shortage in farming

Abstract: Amid a severe shortage of manpower, a team comprised of researchers from private companies and a university in Aichi Prefecture is working on developing a self-driving robot that uses cutting-edge technology to support flower-growing farmers. In fiscal 2019 the group hopes to start marketing automated, handcart-type robots that follow pickers of roses and chrysanthemums, carry the cut flowers, and deliver them to collection points. In a laboratory at Toyohashi University of Technology in Toyohashi, a roughly 1-meter-high handcart-type robot — equipped with three cameras and two infrared radar devices — moves back and forth, changing direction smoothly. The robot, which recognizes its location through camera footage, can self-drive on the farm grounds or inside greenhouses, follow flower pickers while keeping a certain distance, collect picked flowers, and carry them to designated collection points. Following flower pickers and transporting cut flowers became possible through the use of autonomous driving technology that involves the 3D mapping of farm grounds. Institutions from which researchers are participating in the development team include Sinfonia Technology Co., an electric appliances manufacturer which has its main factory in Toyohashi, and Aichi Agricultural Research Center. The project started in fiscal 2016 with a subsidy from the prefectural government to support next-generation robot development. Among Japan’s 47 prefectures Aichi has maintained the top position in flower shipments for 55 years in a row. In fiscal 2016 the value of shipments reached ¥57.2 billion, accounting for 16 percent of the nation’s total. However, the industry has recently faced a shortage of workers due to the aging of farmers, and growers have become alarmed by an increase in imports of flowers mass produced in countries where labor costs are lower. The robot project began in response to farmers’ hopes to further improve work efficiency. “Handcart-type robots are highly versatile as they can be used in sectors other than the flower industry, such as picking fruit and vegetables and delivering components inside factories. We expect strong demand for the product,” said Mitsuo Tsume, 69, who heads Sinfonia Technology’s new project planning division. The labor shortage in the agriculture industry is worsening as each year passes. According to farm ministry statistics, the number of laborers working on the nation’s farms fell by about 50 percent over the last decade, dropping from 3.12 million in 2007 to 1.81 million in 2017, and is expected to continue declining. The average age of Japanese farmers is climbing; it reached 66.6 years old in 2017. Major farm machinery manufacturers are working hard to develop self-driving vehicles and other products to facilitate automation in agriculture. Kubota Corp. began trial sales last year of its self-driving robot tractor that plows the land using GPS data. Similar robots have also been developed by rivals Yanmar Co. and Iseki & Co. The companies are also aiming to sell automated machines for rice planting and harvesting.

aichi self-driving robots flowers agriculture


Host city reps for Rugby World Cup brainstorm ways to draw tourists to Japan

Abstract: Representatives of the 12 cities hosting matches for Rugby World Cup in 2019 met in Tokyo for the first time Monday to discuss ways to draw fans to their tourist spots during the 44-day sporting event. The tournament scheduled between Sept. 20 and Nov. 2 next year is expected to draw 400,000 foreign visitors. The meeting of host cities was organized by the Japan National Tourism Organization to share methods that have worked in the past and to share their tourism know-how. “It will be the first time the Rugby World Cup is held in a country that does not have roots in rugby . . . and worldwide rugby fans are sure to be interested in exploring other parts of Japan as well,” said Masahiro Kato, a senior official of the Rugby World Cup 2019 Organizing Committee. “I hope that 2019 will not simply become a one-off event, but rather an opportunity to connect each local municipality with world cities.” The 12 hosts are Kamaishi, Iwate Prefecture; Kumagaya, Saitama Prefecture; Toyota, Aichi Prefecture; Higashi-Osaka, Osaka Prefecture; Kobe; Oita; Shizuoka Prefecture; Sapporo; Tokyo; Yokohama; Fukuoka and Kumamoto. In a recent online survey conducted by JNTO that drew responses from about 2,000 fans in the major rugby countries of Australia, France, Ireland, Italy, and New Zealand, around 62 percent said they were interested in visiting Japan. Of that group, 88.8 percent said they had never visited and 50 percent said they would visit popular sightseeing spots if they did. The previous event in England attracted 420,000 foreign visitors. The upcoming tournament in Japan is expected to generate economic benefits to the tune of ¥437.2 billion, according to the World Cup organizer. “The rugby match period lasts six weeks, which is quite long compared to other sports because there are a few days when no games will be held,” Kato said. “During that time, we expect foreign tourists to explore all over Japan.” JNTO is considering producing promotional videos in which legendary players will introduce the 12 host cities. It hopes the videos will be broadcast on major foreign TV networks, including Fox Sports and Sky Sports. Last year, JNTO launched a website called Discover Japan that provides brief introductions to each of the host cities and their tourist spots. So far, the site has drawn more than 500,000 visitors, with most checking out the page detailing each team and the match locations. In the run-up, Japan will host the Bledisloe Cup, a match between Australia and New Zealand on Oct. 27 at Nissan Stadium in Yokohama, followed by a match between Japan and New Zealand at Ajinomoto Stadium in Tokyo on Nov. 3.

rugby world cup
jnto
sightseeing
foreign tourists


Turning the page on an era: Pager services to end in Japan after 50 years

Abstract: Japan will soon be out of pagers after its only provider said Monday it will terminate the service next September, with the device — first introduced half a century ago — made redundant by mobile phones. Around 1,500 customers have remained subscribers to Tokyo Telemessage Inc., including people working in hospitals who favor the device because it doesn’t emit electromagnetic waves. The company’s current service area covers Saitama, Kanagawa and Chiba prefectures as well as Tokyo. Tokyo Telemessage is planning to start a new radio service using the frequencies that were allocated to pagers. President Hidetoshi Seino said it will provide governments in other regions with information to help manage disaster relief operations more efficiently. Beeper services began in Tokyo’s 23 wards in July 1968 with Telephone Public Corp., a predecessor of NTT Corp., and eventually spread nationwide. They aroused strong demand from hospitals, businesses and government offices, with the number of subscribers topping 10 million in 1996. The popularity of pagers grew in the 1990s with female high school students becoming ardent fans; they came up with clever number combinations to exchange messages. For example, the feature allowed users to send short numerical messages such as “0840,” which in the Japanese language can be pronounced as “ ohayō ” (good morning). Other messages following this pattern included “0833,” or “ oyasumi ” (good night) and “0906,” or “ okureru ” (I’ll be late). The wireless devices were also featured in TV series and songs at the time, becoming a symbol of the age. The number of pager service subscribers peaked at 10.61 million in 1996. But around that time use of mobile phones increased, supplanting beepers. One provider after another ended their service in the years that followed. NTT Docomo Inc., the mobile unit of NTT, terminated its pager service in 2007, leaving only regional operators such as Tokyo Telemessage in the business. Last year, Okinawa Telemessage, based in Naha, Okinawa Prefecture, ended its service. Tokyo Telemessage once filed for bankruptcy but was purchased by another firm and has continued its pager service.

pagers
pocket bells
tokyo telemessage inc .


Tokyo stocks up for seventh session on U.S.-China trade truce

Abstract: Stocks continued their bull run for the seventh consecutive session Monday after the United States and China struck a temporary truce Saturday in their trade dispute. The Nikkei 225 average rose 223.70 points, or 1.00 percent, to end at 22,574.76 after rising nearly 350 points to hit a level unseen since mid-October on an intraday basis. On Friday, the key market gauge added 88.46 points. The Topix, which covers all first-section issues on the Tokyo Stock Exchange, finished 21.60 points, or 1.30 percent, higher at 1,689.05 after gaining 7.98 points Friday. A broad range of issues attracted buy orders from the outset, after U.S. President Donald Trump and his Chinese counterpart, Xi Jinping, agreed to a 90-day suspension of new U.S. tariffs on Chinese imports when they met on the sidelines of a Group of 20 summit in Buenos Aires, brokers said. The signing on Friday of the United States-Mexico-Canada Agreement, or USMCA, an update of the North American Free Trade Agreement, was another positive factor for stock prices, brokers said. “Investors who assumed the worst bought back stocks” following the U.S.-China agreement, an official of a bank-affiliated securities firm said. The agreement was not a “big surprise” as there had been many media reports suggesting progress in U.S.-China talks, the official said, adding that the latest development between the world’s largest economies alone “would not shore up the global economy.” Tomoaki Fujii, head of the investment research division at Akatsuki Securities Inc., expressed hope for a further recovery in stock prices later this year thanks to the 90-day trade war cease-fire and growing expectations for a halt to U.S. Federal Reserve interest rate hikes. “The trade issue and rate hikes have weighed on Tokyo stocks this year,” Fujii said. Risings issues outnumbered falling ones 1,579 to 472 in the TSE’s first section, while 68 issues were unchanged. Volume decreased to 1.340 billion shares from 1.819 billion Friday. Automakers were buoyant after the USMCA deal, brokers said. Toyota gained 3.37 percent, Mazda 3.26 percent and Subaru 3.33 percent. China-linked issues attracted purchases as concerns over U.S.-China trade friction receded to some extent. Major gainers included industrial robot producers Fanuc and Yaskawa Electric, and construction machinery maker Komatsu. Other major winners included mobile phone carrier SoftBank Group and game maker Nintendo. On the other hand, drugmaker Takeda and clothing retailer Fast Retailing closed lower.


Nissan 'CEO whisperer' Greg Kelly ponders fate from Tokyo jail

Abstract: Inside Nissan Motor Co. he was known as the “CEO whisperer”: The chief of staff who would deliver the most delicate messages to Carlos Ghosn, and the man Ghosn would count on to enforce his directives. Today, Greg Kelly is locked up in a small Tokyo jail cell with a toilet and wash basin, cut off from Ghosn and barely able to speak with his own lawyers. Kelly, the only American to serve on Nissan’s board, was arrested Nov. 19 along with Ghosn, both on suspicion of financial misconduct. Nissan has called Kelly a mastermind of a criminal plot to underreport his boss’s income. Barely known outside Nissan circles, Kelly’s decadelong role as Ghosn’s loyal gatekeeper and confidant now thrusts him to the heart of the investigation by Japanese authorities. That relationship may put him in the thorny position of holding Ghosn’s legal fate in his hands. Kelly, 62, could spend years in prison if it’s shown he was complicit in any wrongdoing. “If their behavior was illegal, then the people who know about it have an obligation to tell the truth; it has nothing to do with loyalty,” said Maryann Keller, an independent auto analyst in Stamford, Connecticut. “That goes for Greg Kelly, too. If he was ordered to do illegal things by Carlos Ghosn, he’d be a fool not to say that.” A whistleblowing tip from inside Nissan sparked the investigation, according to CEO Hiroto Saikawa. This may have come as a personal blow to Kelly, as he placed the people who are privy to the intricacies of Nissan executives’ compensation in their positions. Aubrey Harwell, Kelly’s Nashville, Tennessee, lawyer, said his client “takes the position that what he did was legal and appropriate.” Kelly claims Japanese regulators had approved his practice of not including Ghosn’s deferred pay in securities reports, according to Kyodo News. Ghosn has denied any wrongdoing, NHK reported last week. Neither man has been formally charged yet. Ghosn also denies passing on personal trading losses to the carmaker, according to his lawyer, Motonari Otsuru. This account of the relationship between Kelly and Ghosn is based on interviews with four people who worked with them closely, and who requested anonymity to protect themselves from possible reprisal. Kelly joined Nissan in 1988 as an attorney in Smyrna, Tennessee, at what is now North America’s largest assembly plant. The following year, Kelly helped organize and win an anti-union campaign there against the United Auto Workers. Kelly rose quickly, first to head of human resources at Smyrna and then, by 2006, to running the department for all of North America. He personally recruited dozens of replacements for executives who balked at moving when the company shifted its U.S. headquarters from Gardenia, California, to Nashville. Two years after that, he was in Tokyo running the office of the CEO for Ghosn. In 2012, he was elevated to the Nissan board of directors. “Greg is a smart, high-character, hard-working individual,” said Jim Press, a former Toyota and Chrysler executive who has advised Kelly on executive recruitment. “I was shocked and saddened by headlines that taint his contribution to the company.” The office of the CEO put Kelly at the heart of Nissan’s operations. The automaker’s worldwide human resources, legal, communications, audit and compliance staffs all reported to him. He controlled the flow of paperwork and telephone calls that reached Ghosn. He coordinated Ghosn’s increasingly complex interactions as chairman of an alliance composed of Nissan, Renault SA and six additional companies they were partners or affiliates with. After each executive committee meeting, it was Kelly’s job to make sure Ghosn’s wishes were carried out. Kelly was on speed dial with Ghosn. He was often the first person Ghosn met with after arriving back in Tokyo following his many overseas trips. He accompanied Ghosn as part of a tight inner circle that shared long hours away from families. In conversation, Kelly was usually soft-spoken and relaxed. But he was a demanding boss, issuing detailed instructions and rapid-fire changes in priorities, and sidelining people whom he or Ghosn felt were not keeping up. Channeling the management style of Ghosn himself, he ruled through fear more than affection. The UAW remained a constant bete noire through Kelly’s career. He chaired informal committees to run anti-organizing campaigns, and to monitor how union support ebbed and flowed on the factory floor. Nissan beat back the UAW again by decisive margins in Smyrna in 1997 and 2001, and in Canton, Mississippi, last year. Executive pay was another focus, as Ghosn came to chafe over Japanese and French social mores that blocked the kind of pay his peers were receiving. For 2009, for example, the Nissan human resources department — led by Kelly — released a Towers Watson report showing that Ghosn’s $9.5 million Renault-Nissan pay package substantially trailed that of Ford’s Alan Mulally and Fiat Chrysler’s Sergio Marchionne. Kelly retired from day-to-day management in 2015, though he remained a Nissan director until Nov. 22. He spent more and more time at his home on Sanibel Island, Florida. Ghosn left the Nissan CEO job last year, naming Saikawa as his successor. Saikawa retained the office of the CEO and populated it with executives who, like himself, had been personally backed by Kelly. The associations apparently weren’t enough to stop at least one of them from calling the police.

nissan
greg kelly
carlos ghosn
carmakers
scandals


Trump-Xi truce does little to bridge vast U.S.-China divide

Abstract: BEIJING - For most of the past year, the U.S. and China have failed to make significant headway in resolving issues at the heart of an escalating trade war. Another 90 days is unlikely to change much. Donald Trump and Xi Jinping called a truce at a high-stakes meeting on Saturday night in Argentina, with the U.S. president agreeing to postpone a planned tariff hike on Chinese goods for three months in return for greater purchases of American goods. The arrangement provides breathing space to both leaders as they face slumping stock markets and economic warning signs. While the detente is a welcome relief to equity investors, the fundamental divide between the world’s biggest economies is still vast. Negotiations have long been stuck over U.S. demands for deep structural reforms such as stopping forced technology transfers, enforcing intellectual property rights and ending state subsidies for strategic industries — all of which China sees as an American strategy to thwart its rise as a global power. “I will eat my hat if this means anything substantive,” Michael Every, head of Asia financial markets research at Rabobank in Hong Kong, said of the truce. “Neither side is fully ready for the war, but neither side will budge.” Even so, the agreement should help alleviate immediate concerns that trade tensions would further stoke geopolitical tensions, a prospect that has raised worries of a new Cold War. The White House emphasized that Xi agreed to continue pushing for a nuclear-free North Korea, while Beijing said Trump would respect the “One-China” policy regarding relations with Taiwan — one of the biggest potential flash points between the nations. It also showed that both sides could be pragmatic. Xi won at least another three months before punitive tariffs on $200 billion in goods rise to 25 percent, allowing Chinese policy makers more time to offset the blow as growth slows. ‘Santa rallies’ Trump, meanwhile, got China to buy more American agricultural, energy and industrial goods while still maintaining the leverage of a tariff increase to pressure Xi into making greater concessions on structural issues. China also pledged action to clamp down on the synthetic opioid fentanyl, and Trump said Xi was open to approving a possible $44 billion deal for Qualcomm Inc. to purchase NXP Semiconductors NV if the companies are still interested. Risk appetite returned to markets on Monday, as U.S. equity futures climbed alongside Asian stocks, the Australian dollar and the Chinese yuan. Shares from Sydney to Seoul gained and the 10-year Treasury yield jumped back above 3 percent. “The presidents want the markets to enjoy Santa rallies first,” said Junheng Li, the founder of JL Warren Capital LLC, a China-focused research company in New York. “And when February comes we can start worrying again.” Farmers to benefit All in all, the moves give Trump a positive message for the business community as well as farmers, particularly those growing soybeans in states he needs to win to get re-elected in 2020. He hailed the “incredible deal” on Air Force One while heading back to the U.S., telling reporters that China will buy “a tremendous amount’ of agricultural goods. “Trump doesn’t give up much by a short pause and gets a chance to ship the soybean harvest to China while the negotiations are ongoing,” said Brad Setser, a former Treasury official and now a senior fellow at the Council on Foreign Relations in Washington. “The hard part is finding the basis for a real deal that settles the broader issues rather than agreeing on a pause.” One sign of the discord was the failure to issue a joint statement laying out the framework for talks. Each side gave its own readout of the outcome, and they contained key differences: China, for instance, made no mention of the 90-day time frame, while the U.S. didn’t reference the “One-China” policy regarding Taiwan ties. China’s omission on the deadline indicates it has reservations on how to handle U.S. demands, according to Wang Peng, an associate research fellow of the Chongyang Institute for Financial Studies, Renmin University of China. Making the type of domestic reforms sought by the U.S. is “extremely difficult as such moves involve the country’s reputation, the party’s authority and the structure of the domestic economy,” he said. The crux of Washington’s deeper concerns with Beijing could be found in a 53-page report issued by Trade Representative Robert Lighthizer’s office about 10 days before the Trump-Xi meeting. It accused China of continuing a state-backed campaign of intellectual property and technology theft, downplayed its moves to ease foreign investment restrictions and raised alarm about its “Made in China 2025” policy to lead the world in sectors such as artificial intelligence and robotics. In China, officials repeatedly say moves to ease rules on foreign ownership of financial firms and automakers show they are opening up to the world. They also strictly rule out dropping government support for companies in strategic “Made in China” industries over fears that would undermine China’s future economic prospects and threaten the power of the ruling Communist Party. The divergence in worldviews makes any lasting solution difficult to achieve unless either Trump or Xi backs down. Still, given the emerging risks to the global economy, and the political costs that entails for each leader, it may be in both of their interests to keep dragging out the talks. “Growth is going to slow in both countries,” said David Loevinger, a former China specialist at the U.S. Treasury and now an analyst at fund manager TCW Group Inc. in Los Angeles. “While it doesn’t remove the sword of Damocles hanging over trade, having blinked tonight you’d have to guess that the U.S. will blink again in March.”

china
trade
donald trump
xi jinping
u.s .


'Hundreds' of Aussie convictions in doubt after mob lawyer named as informant

Abstract: SYDNEY - Hundreds of criminal convictions — including those meted out to some of Australia’s most notorious gangland figures — hang in the balance, after their defense lawyer was revealed as a police informant Monday. Court documents disclosed that a high-profile Melbourne barrister had for years been giving information to Victoria Police, while representing clients like crime boss Tony Mokbel and six of his associates. The revelation came after court injunctions were lifted Monday, blowing the lid off one of the biggest legal scandals to hit the country in years and prompting the authorities to immediately announce a public inquiry. In a secret court battle spanning more than two years, police had tried to stop state prosecutors from informing the seven people about their barrister’s role as an informant. They were finally knocked back by Australia’s highest court last month. The High Court blasted police as being “guilty of reprehensible conduct” and said they were “involved in sanctioning atrocious breaches of the sworn duty of every police officer.” “The prosecution of each convicted person was corrupted in a manner which debased fundamental premises of the criminal justice system,” the High Court added in a scathing judgment. The lawyer — given the code name 3838 by police when she was working as an informant between 2005-2009 — kept in daily contact with her handlers, who passed on information provided by her to various police task forces, court documents stated. While the courts only mentioned Mokbel and his associates, more than 600 cases could be tainted, according to Melbourne’s Herald Sun. Mokbel was jailed in 2012 for a minimum of 22 years for masterminding a drug-trafficking empire. The High Court decision means criminals would be notified that their barrister, who still cannot be named, was a police informant, thus possibly affecting their cases. It would mean these criminals could then appeal their convictions. Victoria Director of Public Prosecutions Kerri Judd said she has written to 20 individuals about their cases, and was assessing others. “If appropriate, I will also write to those affected individuals,” she said in a statement. Victoria Premier Daniel Andrews meanwhile announced a royal commission into the scandal, saying the public had a “right to know that every part of the justice system acts fairly and lawfully at all times.” Victoria Police Chief Commissioner Graham Ashton said the force changed how it managed informants in 2009, so such incidents cannot be repeated today. Ashton said while police would cooperate with the probe, what was happening in the underworld at that time should be taken into account. “Melbourne was in the grip of what is now rightly known as the gangland wars,” he told reporters. “The risk to the community at this time was significant.” Legal advocacy group The Human Rights Law Centre said an independent investigative body should also be established to probe all allegations of police misconduct. “This case touches the highest levels of Victoria Police. While this is an extreme case it’s not an isolated example of police misconduct,” said the centre’s Ruth Barson in a statement.


Iga, known for its ninja, looks to draw foreign tourists by turning castle town into a hotel site

Abstract: The Mie Prefecture city of Iga, the origin of one of Japan’s most famous ninja clans, plans to open the growing number of vacant homes in its castle town to tourists. Under the “castle town hotel” project, the Iga Municipal Government will renovate traditional Japanese homes — some built in the Edo Period — in the district south of Ueno Castle. The idea is to appeal to foreign tourists by offering the experience of staying in a castle town. “We hope to make use of historically valuable buildings and curb the decline of the city center,” an Iga official said. Around a corner from the main street in Iga, homes line a quiet street. Some have gates and gardens, many overtaken by weeds. “There are more than six vacant houses along this street alone,” said Takashi Toyomi, a municipal government official in charge of vacant houses. “It would be a waste not to utilize the houses with such an atmospheric feel. If vacant houses keep on increasing, the community would disappear as well.” According to the local government, there are 308 vacant houses in the city center, making up 15 percent of all empty housing in the city. The city will start by renovating five vacant homes in the area within a radius of 500 meters by the spring of 2020, with the idea of creating a small villa with a reception area, a restaurant, a gallery and an information center for foreign tourists. The city will also create a map showing restaurants and public baths in the neighborhood. According to the municipal government, as many as 111 vacant houses in the city center were evaluated as having high historic value, having been built in the Edo Period (1603 to 1868) or the Meiji Era (1868 to 1912), with some more than 200 years old. The city plans to start renovating them in 2020. The idea of transforming a castle town into a hotel started in Sasayama, Hyogo Prefecture, in 2015, when officials there launched a project to revitalize the area. Nipponia is a group of traditional homes scattered around Sasayama that are used as accommodations for tourists. The buildings maintain their traditional look on the outside but have been refurbished inside with changes such as turning a kitchen into a lobby. “In addition to the increase of tourists who stay longer, we are seeing more people settling in or starting businesses here,” said Takeshi Fujiwara, head of Note, a Sasayama-based company that operates Nipponia. Regarding Iga, Fujiwara said: “The size of the castle town (in Iga) is bigger than that of Sasayama, and the place is already well known thanks to ninja, so it has a lot of potential.” Iga Mayor Sakae Okamoto, who visited Sasayama on an inspection tour, said: “We hope to follow suit in Iga with the help of the private sector.”


New Japan-Russia framework set, but obstacles to territorial talks abound

Abstract: BUENOS AIRES - A new framework between Japan and Russia has been set for negotiations on their decades-old territorial row and a peace treaty, with a critical point in the talks seen coming sometime in the first half of next year. But the talks are expected to be tough as the two sides remain far apart over the territorial dispute concerning four Russian-controlled islands off Hokkaido, informed sources said, noting that the course of the negotiations will likely be influenced by public opinion in both countries as well as moves by the United States. Under the new framework agreed to by Prime Minister Shinzo Abe and Russian President Vladimir Putin at their meeting in Buenos Aires on Saturday, Deputy Foreign Minister Takeo Mori and his Russian counterpart, Igor Morgulov, will mainly engage in the negotiations, with the overall framework led by the two nations’ foreign ministers — Taro Kono of Japan and Sergey Lavrov of Russia. Mori and Morgulov have been appointed to be the special representatives of Abe and Putin, respectively. At their previous meeting in Singapore in mid-November, Abe and Putin agreed to accelerate the negotiations based on the 1956 Japan-Soviet joint declaration, which stipulated that two of the four islands, the Habomai group and Shikotan, as they are called in Japan, be handed back to Tokyo after the conclusion of a peace treaty. But Putin has suggested Moscow’s intention to maintain its sovereignty over the two islands — even after the possible handover. The handling of the other two islands — Etorofu and Kunashiri — is more uncertain. Japan’s basic position is that Tokyo and Moscow should conclude a peace treaty after resolving the sovereignty of all four islands, but Abe has apparently indicated his readiness to deal with the Habomais and Shikotan first. Former Foreign Minister Katsuya Okada said that Abe appears to have backed down from the conventional government policy, adding that the prime minister has “given no explanation at all” as to the about-face. Japan has claimed that Russia continues to illegally occupy the four islands, while Moscow has maintained that its sovereignty resulted from World War II and was recognized by international law. Russia may possibly urge Japan to change its view in this regard, experts have said. The territorial issue has prevented Tokyo and Moscow from concluding a peace treaty to formally end their wartime hostilities. The islands were seized by the former Soviet Union at the end of the war. Russia’s recent seizure of Ukrainian warships is also expected to cast a pall over the Japan-Russia negotiations. While the international community is increasingly critical of Russia over the incident, it will be difficult for Japan alone to push for bolstered dialogue with Moscow. The ships’ seizure “could affect” the Japan-Russia negotiations, a senior Japanese Foreign Ministry official said. At the Buenos Aires meeting, Abe conveyed Japan’s concern over the matter to Putin. Russia is wary that if any of the islands are handed over to Japan, an ally of the United States, the U.S. military could set up a base there, upsetting the strategic balance in the area. Russia may call on Japan to lift sanctions it launched with the United States and European nations in response to the 2014 Ukraine crisis, a scenario that would put Tokyo in a difficult position. If progress has been made on the territorial issue, which has remained unresolved for over 70 years since the end of World War II, Abe may dissolve the House of Representatives, the all-important lower chamber of the Diet. This would allow him to set a general election on the same date as the triennial Upper House election in the summer of 2019, some sources said. However, if Japan is unable to keep even the possible return of two of the islands on track, the Abe administration could face headwinds, leaving his ruling Liberal Democratic Party forced to fight an uphill battle in the Upper House election, the sources added. Putin, also, is believed to be facing his own set of challenges, including a faltering public support rate following pension reforms. With his political foundation less than solid at home, Putin “will never make territorial concessions that would draw a backlash from the Russian people,” a senior Japanese government official said.

territorial dispute
prime minister shinzo abe
russian president vladimir putin
russia-japan relations


Japanese government starts accepting exam applications from people with disabilities

Abstract: The National Personnel Authority began accepting applications on Monday for the first-ever unified examinations to hire people with disabilities as government workers. The exams will be conducted in the wake of an investigation that found central government ministries and agencies had padded the number of disabled employees to meet legally required levels. Through the exams, which comprise first-round paper tests set for February and subsequent interviews by separate government bodies, a total of 676 people will be hired. The successful applicants will be announced on March 22. The authority said people can take the exams if two or more years have passed since their junior high school graduation and they have certificates stating their disabilities. Applications will be accepted until Dec. 14. The paper tests, to be held in Tokyo, Osaka and seven other cities, will ask takers to answer high school-level questions about general matters and write an essay. Braille answer sheets and other special measures, such as approval for guide dogs and the use of personal computers, will be available upon advance request. A joint job explanation session held late last month by government ministries and agencies was swamped with more applicants than expected, indicating disabled people’s high interest in the upcoming exams. The central government aims to hire about 4,000 disabled people as full-time and part-time employees by the end of next year.

disability
national personnel authority
jobs
bureaucracy


Carlos Ghosn continues to deny wrongdoing as experts question prosecutors' framing of case

Abstract: Ousted Nissan Motor Co. Chairman Carlos Ghosn has continued to deny allegations of financial misconduct, saying he cannot accept making what he said would be a false confession as doing so would harm his reputation, sources said Monday. The 64-year-old, who is known for rescuing Nissan from the brink of bankruptcy in the 1990s, was arrested last month for allegedly understating his compensation. He was subsequently removed as chairman of the automaker. He is suspected of breaching the Financial Instruments and Exchange Law by reporting only ¥5 billion ($44 million) of his ¥10 billion in compensation during the five years through March 2015. Ghosn’s annual compensation had been set at around ¥2 billion, but he is charged with failing to report around half of the amount, which he was to receive after stepping down. Ghosn has told prosecutors that it was unnecessary to report some of his remuneration as the payment had yet to be settled, according to different sources with knowledge of the investigation. He was also quoted as saying that the remaining remuneration was just an amount he had hoped to receive. According to the sources, Ghosn said he consulted with close aide Greg Kelly, 62, a former Nissan representative director who was arrested along with Ghosn for alleged conspiracy, and was told by Kelly that it was legal even if he did not report the post-retirement payment. The post-retirement compensation that went unreported for eight years through March 2018 is believed to have totaled more than ¥8 billion. Prosecutors are also considering charging Ghosn over ¥3 billion he failed to disclose during the three years through this March. Ghosn and Kelly were arrested Nov. 19 and their detention period will expire next Monday. As the detention period has grown longer, experts have questioned the way prosecutors have framed the case. One of the biggest mysteries surrounding Ghosn’s arrest is over how he allegedly could have underreported his income by millions of dollars for years and why the company is going after the suspected wrongdoing now. “Wait a minute. Who wrote the financial statements? The accountants. Who audited them? The auditors,” Christopher Richter, auto analyst for CLSA Securities Japan Co., said of the case. “How do you do this without other people being complicit?” Prosecutors say Ghosn and Kelly were arrested because of flight risks. But the timing of the scandal, given the length and scale of the alleged wrongdoing, is raising questions. Why did Nissan choose to come forward now, asked Eric Schiffer, chief executive of Reputation Management Consultants in the Los Angeles area. “If Nissan knew about this all along and decided to pull the trigger, such Machiavellian tactics will significantly backfire on the brand,” Schiffer said. Media reports have said that two other company employees contacted authorities as whistleblowers and sought plea deals. Ghosn has not made any public statements about the case. Kelly’s American lawyer, Aubrey Harwell, said his client, who was dismissed as a Nissan executive director after his arrest, did nothing wrong. Kelly acted “according to the law and according to company policy,” Hartwell said. “He had talked to people in the company and to outsiders, and he believed everything he did was done totally legally,” he said in a telephone interview from his office in Nashville, Tennessee. Prosecutors have released very little information. Neither man has been officially charged. Under Japan’s criminal justice system, suspects can be held for weeks and months for questioning without any charges being formally filed.

carlos ghosn
nissan
greg kelly
scandals
carmakers


Japanese weather observatories shift to forecasting snow over shorter spans

Abstract: Weather observatories are shifting toward providing snow forecasts for shorter time frames, hoping to better accommodate sudden weather changes and prevent disasters and traffic disruptions. The observatories have traditionally forecasted snow for the next 24 hours, but many have shifted to 12 hours and some even to six hours as snow has been causing delays in train services and stranding vehicles on roads even in the early stages of accumulation, according to the Meteorological Agency. The observatories issue heavy snow warnings based on the forecasts for each municipality, and shortening the forecast span means the warnings would be based on more accurate information than before. The 12-hour forecast was introduced in Hokkaido in 1995 and has since spread to Tokyo and 31 prefectures, the agency said. Among the areas that have adopted the system are some that are not accustomed to receiving much snow. They include those on the Pacific coast, such as Shizuoka and Mie prefectures, which often only get snow for half a day due to a low pressure system that develops during winter and spring and travels eastward along Japan’s southern coasts. Meanwhile, many areas that receive heavy snowfalls have adopted the six-hour forecast. A part of the Ishikari region, including Sapporo, issues heavy snow warnings if 30 cm is expected in the next six hours or 40 cm in next 12 hours, while Niigata issues such a warning if 30 cm of snowfall is forecasted in the next six hours. “Snow-caused road closures have a big social impact. We are considering what would be effective standards in issuing warnings and advisories,” said an agency official. The standards, including the time frame and amount of snowfall, are set for each municipality, excluding those in Okinawa, which has a subtropical climate, and are subject to reviews if necessary.

weather
snow
disasters
meteorological agency


Japanese economy minister returns salary over pay offer to government-backed fund that was 'too high'

Abstract: Economy minister Hiroshige Seko said Tuesday he will voluntarily return a month’s pay after his ministry offered annual remuneration of over ¥100 million to executives at a government-backed investment fund and later retracted it for being “too high.” “We have caused an administrative blunder where we proposed an undetermined plan to the management of the (Japan Investment Corp.) and canceled it, triggering mutual distrust” between the ministry and the fund, Seko told a news conference. Takashi Shimada, vice minister at the Ministry of Economy, Trade and Industry, will voluntarily return 30 percent of a month’s wages to take responsibility for insufficient supervision as the ministry’s top bureaucrat. The ministry said Monday it will retract its proposal of annual remuneration of up to over ¥100 million made on Sept. 21 to four JIC executives, including for President and CEO Masaaki Tanaka, after judging that the amounts were higher than at other public-private funds. “I had not been briefed on the amount of remuneration,” Seko said. “There is a sense of appropriate level that the public can accept. (The proposed amount) was too high.” Following the decision to review the level of remuneration, the ministry notified Tanaka and held talks with him, including on Nov. 9 and Nov. 24, but the fund chief rejected the suggested changes, according to the ministry. On Nov. 28, the fund applied to the ministry for approval of its budget plan for the fiscal year starting April, with the assumption that the amount of remuneration would be at the level initially proposed by the ministry. The ministry decided Monday not to approve it. The fund said Monday that it responded in line with the ministry’s proposal in September and with relevant laws such as the Companies Act. Executive remuneration has become a hot topic following the arrest of Carlos Ghosn, former chairman of Nissan Motor Co. and one of the highest-paid executives in the country, for allegedly understating his pay in securities reports presented to regulators. The government holds nearly 100 percent of the shares in the Japan Investment Corp., which was launched in September to invest in ventures, replacing the government-backed Innovation Network Corp. of Japan fund.


TSE's winning streak ends at seven

Abstract: Stocks turned sharply lower Tuesday, hit by a wave of selling to cash in gains after a seven-session rally. The Nikkei 225 average tumbled 538.71 points, or 2.39 percent, to end at 22,036.05 after gaining 223.70 points Monday. The Topix, which covers all first-section issues on the Tokyo Stock Exchange, finished 39.85 points, or 2.36 percent, lower at 1,649.20. It rose 21.60 points Monday. Profit-taking took the upper hand amid a dearth of major trading incentives, market sources said. In afternoon trading, the market accelerated its downswing in line with the yen’s strengthening against the dollar. “Profit-taking easily emerged after the Nikkei gained over 1,000 points at a rapid pace” over the last seven sessions through Monday, said Yoshihiko Tabei, chief analyst at Naito Securities Co. Chihiro Ota, general manager for investment research and investor services at SMBC Nikko Securities Inc., stressed that the market tumbled “in the absence of buyers.” Buying was held in check due to the yen’s strength, Ota noted. An official of an asset management company indicated that the market was dragged down by futures-led selling. Falling issues far outnumbered rising ones 1,960 to 125 in the TSE’s first section, while 34 issues were unchanged. Volume grew to 1.551 billion shares from 1.340 billion Monday. Game maker Nintendo closed 5.28 percent lower after its recent surge. Beverage producer Itoen dived 5.98 percent due to selling prompted by its dismal group operating and net profits for the six months through October, brokers said. Other major losers included clothing retailer Fast Retailing and semiconductor-related Tokyo Electron. By contrast, precision equipment producer V-Technology attracted purchases after announcing a share buyback plan Monday. Camera maker Konica Minolta was among a handful of gainers.


Dollar weaker around ¥113.10 in late Tokyo trading

Abstract: The dollar was softer around ¥113.10 in Tokyo trading late Tuesday, hurt by sluggish local stock prices. At 5 p.m., the dollar stood at ¥113.10-11, down from ¥113.46-47 at the same time Monday. The euro was at $1.1380-1380, up from $1.1368-1368, and at ¥128.72-72, down from 128.99-¥129.00. After moving around ¥113.50-60 in early trading, the dollar fell to around ¥113.30 midway through the morning due to a drop in long-term U.S. interest rates in off-hours trading. The greenback dropped to around ¥113.10 in the afternoon as the Nikkei 225 stock average expanded losses, traders said. In late trading, the U.S. currency resisted falling further and fluctuated around the ¥113.10 line, thanks to a halt to the fall in long-term U.S. interest rates. The dollar came under selling pressure versus the yen as an agreement between U.S. President Donald Trump and his Chinese counterpart, Xi Jinping, was regarded as “a mere postponement” of trade issues, an official of a foreign exchange margin trading service firm noted. The official also said that dollar selling versus the yen from speculators emerged amid low market liquidity before the U.S. stock and bond markets will be closed Wednesday to mourn for former U.S. President George H.W. Bush, who died Friday. “The dollar did not fall below ¥113 during Tokyo trading hours, but it rebounded only slightly” in late trading, a currency broker said, warning that the U.S. currency may fall further in European trading hours.


Directors meet to decide who will fill Carlos Ghosn's shoes as Nissan chairman

Abstract: Nissan Motor Co.’s independent board members met Tuesday to discuss who should succeed Carlos Ghosn as chairman. Their choice to replace the ousted car titan, now languishing in Tokyo Detention House, will indicate the direction the automaker’s alliance with Renault SA will take. The most likely successors fall on each end of the spectrum: President and Chief Executive Officer Hiroto Saikawa, who has emerged as a driving force behind the investigation into Ghosn’s financial reporting, and Toshiyuki Shiga, a former Ghosn confidant, according to sources familiar with the situation. The external directors have already said they will choose an existing board member as the next chairman. Nissan’s board is due to vote on their choice Dec. 17. At stake is the direction of the world’s biggest car alliance between Nissan, Renault and Mitsubishi Motors Corp., as differences surface among the companies that Ghosn’s leadership held together. The embattled executive, who was arrested Nov. 19 in Tokyo on allegations by Nissan of underreporting his income and misusing company money for personal use, will likely be served with a fresh arrest warrant next week as prosecutors add a new claim, sources familiar with the investigation said. Saikawa’s ascendance to the position of chairman would solidify his power at Nissan, which wants to push for a more equitable partnership with Renault in their alliance after Ghosn’s ouster. The balance of power at Nissan is now tilted toward Saikawa, who has turned from a former Ghosn protege into one of the most vocal critics of his alleged wrongdoing. Shiga’s selection would likely result in more collective management of Nissan. Renault is the largest shareholder of Nissan and has voting rights in the company. Nissan is the second-largest shareholder in the French company but has no power to vote. That has created an imbalance that has worsened over the years with Nissan’s success in markets like China and the U.S., where the French carmaker is absent. Nissan has rejected external chairman candidates suggested by Renault, according to the sources, who asked not to be identified discussing private matters. A Nissan representative declined to comment on the directors’ meeting and the chairman candidates. Ghosn was dismissed as chairman of Nissan on Nov. 22 in a stunning downfall for the jet-setting executive. While Mitsubishi Motors also ousted Ghosn, Renault refused to remove the 64-year-old as CEO, and instead named an interim leader. Meanwhile, Tokyo prosecutors plan to arrest Ghosn on a fresh claim of understating his income, the Sankei Shimbun reported Tuesday, in a move that could keep him in detention until the end of the month. Citing unnamed sources, the newspaper said prosecutors plan to arrest Ghosn and Kelly next Monday for the same crime covering the period from 2015 to 2017, during which the suspects allegedly understated Ghosn’s income by about ¥4 billion. If authorities approve the maximum detention for that case, Ghosn and Kelly would remain in custody until Dec. 30, the paper said. The prosecutors’ office declined to comment on the report.

carlos ghosn
nissan
renault
hiroto saikawa
carmakers
scandals


Former unit of Toshiba's PC business aims for IPO in 2021 fiscal year

Abstract: Toshiba Client Solutions Co., a former unit of Toshiba Corp.’s personal computer business that’s now owned by Sharp Corp., is aiming for an initial public stock offering during the 2021 business year, company officials said. Toshiba Client Solutions wants to create corporate value that ensures a successful IPO, Chairman Yoshihisa Ishida told a news conference in Tokyo on Monday. The company said it will be renamed Dynabook Inc. next month, using the name of the world’s first notebook PC, which was developed by Toshiba. The name change is designed to boost the company’s corporate value by utilizing the strength of the Dynabook brand, Ishida said. Sharp, owned by Taiwan’s Hon Hai Precision Industry Co., acquired Toshiba Client Solutions in October. Toshiba Client Solutions may join hands with Hon Hai on manufacturing in the future, Ishida said.


50 wounded Houthi rebels evacuated to Oman ahead of Yemen peace talks as U.N. envoy visits

Abstract: SANAA - The U.N.’s Yemen envoy visited rebel-held Sanaa on Monday as wounded insurgents were flown out of the capital for medical treatment, a key step towards bringing warring parties to the negotiating table in Sweden. A U.N. source said efforts were being made to reopen Sanaa International Airport, closed for the past three years because of the war between the Iran-aligned Houthis and the Yemeni government backed by a Saudi-led coalition. A U.N.-chartered flight left Sanaa with 50 wounded rebels on board and landed in Muscat, Oman’s official ONA news agency reported. The transfer was “in support of the efforts of the U.N. to prepare the ground for the negotiations planned in Sweden,” ONA said on Twitter. A U.N. source said the wounded had been evacuated in a “confidence-building measure” aimed at pushing ahead with negotiations between the Houthis and the Saudi-led coalition this month. Houthi spokesman Mohamed Abdalsalam tweeted the rebels’ appreciation of U.N. envoy Martin Griffiths for his “humanitarian effort that treats a small part of the Yemeni suffering caused by the closure of the airport and blockade.” Griffiths was “pleased to confirm” 50 injured Yemenis were to be treated on neutral ground in Muscat and “urged all Yemenis to work together in pursuit of peace and stability,” according to the envoy’s Twitter account. The evacuation marked a key step in kick-starting stalled negotiations as world powers press for an end to the devastating conflict that has pushed Yemen to the brink of famine. Saudi Arabia and its allies, who back Yemen’s embattled President Abed Rabbo Mansour Hadi, had agreed to allow for the 50 wounded combatants, 50 escorts and a team of Yemeni and U.N. doctors to be flown out to Muscat — a condition set by the Houthis for negotiations. Kuwait’s Deputy Foreign Minister Khaled al-Jarallah told reporters that a Houthi delegation was set to leave Sanaa for Stockholm on Tuesday morning together with his country’s ambassador to Yemen. The oil-rich Gulf emirate, which has been a mediator in the devastating conflict, hosted Swedish Foreign Minister Margot Wallstrom for talks in Kuwait City on Monday. The fate of wounded rebels had been a stumbling block to the start of a previous round of aborted peace talks in Geneva in September. The rebels had said they would attend the talks in Sweden if they were guaranteed safe passage and the evacuations. Journalists were banned from Sanaa airport in the hours leading up to the departure of the U.N. evacuation flight. Wounded rebels were transported across the capital, controlled by the insurgents since 2014, in ambulances as they made their way to the long-defunct airport. The proposed U.N.-brokered peace talks have been backed by both the rebels and the government and were expected to take place in Sweden this week. U.N. Secretary-General Antonio Guterres, however, has played down the early December schedule and said he hoped talks would start “this year. A U.N. source said the reopening of Sanaa airport was a priority at the next talks. A UN panel of experts this year said the “effective closure” of Sanaa airport since 2015, when the Saudi-led alliance intervened in the Yemen war, constituted a violation of international humanitarian law. The opposing sides have cautiously reiterated their willingness to attend negotiations. Yemen’s information minister, Moammer al-Eryani, said the government had agreed to the Sweden talks as a first step towards “facilitating negotiations” and to end “all excuses invoked by the coupists (rebels) to evade finding peace.” Houthi military spokesman Yahya Saree said the rebels were ready to hold talks “starting with a ceasefire” by the rival coalition, at a press conference broadcast on the insurgents’ Al-Masirah television. Iran also offered support on Monday, saying it was ready to cooperate with the international community to resolve the crisis. Previous talks planned for September in Geneva failed to get underway as the Houthi delegation never left Sanaa, saying the United Nations could not guarantee their safe return. Talks initially broke down in 2016, when 108 days of negotiations in Kuwait failed to yield a deal and left rebel delegates stranded in Oman for three months. U.N. aid chief Mark Lowcock warned last week that Yemen was “on the brink of a major catastrophe. His comments followed renewed deadly clashes between Houthi rebels and pro-government forces in the Red Sea port city of Hodeida, which is vital for the flow of humanitarian aid and controlled by the rebels. The coalition spokesman said military operations in Hodeida were “ongoing” on Monday. The U.N. has described Yemen as the world’s worst humanitarian disaster, with at least 10,000 people killed since the coalition intervened. Rights groups fear the actual toll is far higher.

houthis
oman
yemen
peace talks
sweden
martin griffiths
u.n .
civil war


WHO plans team to consider standards for 'uncharted water' gene editing

Abstract: GENEVA - The World Health Organisation (WHO) said on Monday that gene editing “may have unintended consequences” and that it was setting up a team of experts to study the ethical, social and safety dimensions and set guidelines. “Gene editing may have unintended consequences, this is uncharted water and it has to be taken seriously,” Tedros Adhanom Ghebreyesus, WHO director-general, told a news briefing. “WHO is putting together experts, we will work with member states to do everything we can to make sure that all issues — be it ethical, social, safety — before any manipulation is done.” The Chinese government last Thursday ordered a temporary halt to research activities for people involved in the editing of human genes, after a Chinese scientist said he had edited the genes of twin babies.

who
gene editing
ethics
twins
china
genetics
dna


Labor union says 3,000 foreign workers laid off at Sharp plant in Japan

Abstract: Nearly 3,000 foreign workers dispatched to a Sharp Corp. plant in Mie Prefecture have apparently had their contracts terminated, according to a labor union. The massive reduction of contract workers on the back of a cut in display panel production comes at a time when the government is seeking to revise the immigration law and accept more foreign blue-collar workers into Japan amid opposition parties’ fierce protests. About 3,000 foreign workers were hired by a group of about 10 Sharp subcontractors in Mie and were dispatched to the plant in Kameyama. During collective bargaining last month, the employers told the union that the number of contract workers dispatched to the plant, which mainly manufactures display panels, has dropped to some 100 from 3,000, according to the union. The companies told the union the job cuts resulted from Sharp’s cutback in production of liquid crystal display panels for smartphones. Sharp said it did not directly hire the workers and is in no position to comment on the contract termination, while declining to elaborate on the reduced production. One of the subcontractors said some workers quit voluntarily. According to the company, it and three other firms started hiring foreign workers, including Japanese-Brazilians and Peruvians, from around 2013 and dispatched as many as 2,000 foreign workers to the factory. “Even Japanese descendants are forced to work in a disadvantaged environment. It’s evident that foreign workers who will be accepted after the legal revision will also be denied their human rights,” Hojo Hirooka, the secretary-general of Union Mie, which is based in the prefecture, said Monday during a news conference in Tokyo. Currently, second- and third-generation Japanese immigrants can stay long term and work freely after meeting certain conditions, while fourth-generation people can stay in the country for up to five years when they are between 18 and 30 years old and have a certain level of Japanese language ability, according to the Justice Ministry. Anticipating Sharp’s possible output cut, the companies repeatedly renewed two-month contracts and most of the contracts were terminated by around May, one official said. “It’s a convenient employment control for a prime contractor, and there’s no legal countermeasure,” said Hisanori Shikata, a lawyer versed in foreign labor issues. “The expansion of foreign worker employment is being discussed (in the Diet), but improving the labor environment should come first,” Shikata said.

unions
sharp
mie
kameyama
jobs
nikkei community
expats


Lawyers in South Korean wartime labor case set deadline for response from Nippon Steel & Sumitomo Metal

Abstract: Lawyers representing South Korean plaintiffs in a World War II labor court case against Japan’s Nippon Steel & Sumitomo Metal Corp. have set a Dec. 24 deadline for the firm to show willingness to discuss a court verdict on compensation. If the firm fails to respond, the lawyers, who spoke after being denied a meeting with company officials for a second time on Tuesday, said they would start procedures to seize its South Korean assets. Tuesday’s incident stemmed from a ruling by South Korea’s Supreme Court late in October that Nippon Steel must pay 100 million won ($90,500) to each of four South Koreans for forced labor during the war. The Japanese government has denounced the verdict, saying all wartime reparations were dealt with in a 1965 treaty that normalized ties between the two nations. At the time of the ruling, Nippon Steel called it “extremely regrettable,” but added that it would review the decision carefully in considering further steps. On Tuesday, the lawyers visited Nippon Steel’s Tokyo headquarters for a second time, only to be turned away at reception, said Lim Jae-sung, one of the attorneys. The lawyers left documents at reception regarding the case, Lim told a briefing at the Foreign Correspondents’ Club of Japan. Lim said two options for seizing Nippon Steel’s assets include shares of PNR, a joint venture between Nippon Steel and South Korean steel company POSCO, and intellectual property the company owns in South Korea. The Japanese firm confirmed that it refused to meet the lawyers because its stance has not changed, a company spokeswoman said, adding that the company had received a letter, although she did not comment on the contents. Asked about the Dec. 24 deadline, the spokeswoman said the company would consult the Japanese government and take appropriate action.

wartime labor
nippon steel & sumitomo metal
south korea-japan relations


Nobel medicine laureate Tasuku Honjo visits longtime barber ahead of ceremony

Abstract: KYOTO - Nobel Prize-winning Japanese scientist Tasuku Honjo stopped in over the weekend at a Kyoto barbershop he has been visiting for over half a century as he prepares for his trip to Stockholm next week for the award ceremony. On Sunday, the 76-year-old, who won this year’s Nobel Prize in physiology or medicine along with American James Allison for their studies on cancer therapy, was seen at the shop in Kyoto chatting with his 81-year-old longtime barber. “Hey, your hands are shaky. Haven’t you ever thought of retiring?” the professor emeritus at Kyoto University asked barber Koichi Ueda, who works with his son at the Biriken barber shop near the university. “He was the kind of student who did not hesitate to speak up about his opinions,” Ueda said about his impression of Honjo back when he first came to the shop. Their discussions while Honjo was in the barber’s chair ranged from the student uprisings of the 1970s to baseball. “He is a skilled listener. It’s fun chatting with him,” Ueda said. “I was so happy for him to win the prize.” Honjo became the 26th Japanese Nobel prize winner and is best known for his discovery of a protein that led to the development of an immunotherapeutic drug against cancer.

tasuku honjo
kyoto
nobel prize
university of kyoto


China's import ban on plastic waste pushes Japan and other rich nations to rethink trash options

Abstract: China’s ban on imports of plastic waste is forcing other nations, including Japan and the United States, to scramble for new ways to deal with their trash, including exporting recyclable waste to Southeast Asia. But instead of finding solutions, it appears the problem has only gotten worse, especially with the exploitation of developing countries, including Malaysia and Vietnam, that lack the regulatory infrastructure to prevent illegal dumping. The ripple effects of developed nations being banned from shipping their scraps to China, previously the world’s biggest importer of plastic waste for recycling, have also surfaced in Japan. Waste management companies are being flooded with requests to handle the extra plastic waste, but many have reached their legal limits. “The storerooms of intermediary companies are filled to the brim with garbage from businesses and factories,” said one official at a waste management company in Kanagawa Prefecture. China was criticized at a meeting of the World Trade Organization in October for its abrupt policy shift, which many Western countries believe is detrimental to the global environment. But after decades of importing most of the world’s trash, China has said “enough” — something advocates and activists say should come as no surprise since China has an obligation to consider the health of its people as the second-largest economy in the world. As the quality of life improves, the nation has naturally decided to reduce its emissions, including those from recycling plastics, experts say. For decades, nearly half of the planet’s rubbish had been sent to China, where items such as pop bottles, food wrappers and plastic bags are recycled to make more plastics and raw materials for chemicals. In 2015, China imported about 47 million metric tons of recyclable waste, according to U.S. media reports. The journal Science Advances says research done at the University of Georgia shows that China’s import ban will leave 111 million metric tons of plastic trash displaced by 2030. In July last year, China said it would ban 24 types of solid waste, including plastics, scrap paper and discarded textiles, from overseas vendors because of the damage it does to the environment and people’s health. Since the ban started in January, recycling businesses around the world have been thrown into turmoil, with recyclable waste piling up at waste treatment sites, according to Western media. In Japan, even if intermediate processors are commissioned to dispose of recyclable waste, facilities are subject to legal limits and there are many vendors that refuse to accept the trash. Japan exports about 1.5 million tons of plastic waste per year and until last year around half went to China. According to about a quarter of 102 local governments that responded to an Environment Ministry survey, the amount of plastics stored at local scrap companies increased between January and July, with some reporting that piled-up waste had exceeded the legal limits. Limit violations were found at five local governments, while 34 municipalities said they are struggling to find destinations for their waste. Plastic waste disposal increased at 56 percent of intermediate processors that incinerate or shred plastics and at 25 percent of final processors that bury waste in landfills. A total of 34.9 percent of companies said they are limiting or considering restricting the amount of plastics they accept. Japan produces the largest amount of plastic waste per capita after the U.S. and has lagged behind other countries in curbing the use of plastics despite growing fears over environmental pollution. Some industry insiders say the only option is to enhance the technical capabilities of recyclable facilities through deregulation as well as to raise awareness of wasteful behavior among retailers and consumers. The ministry is compiling a strategy to reduce plastic waste, and sources say it is considering including a numerical target for cutting the amount of disposable plastic waste by 25 percent by 2030, while increasing the use of environmentally friendly bioplastics made from plants. Countries feeling most of the sting brought the import ban up at the WTO’s meeting Oct. 22. Along with the European Union, South Korea, Canada and Australia, the U.S. voiced concerns that China has not given a sufficient explanation for its policy change. Washington argued that if the disruption of the global recycling trade continues, there “could be a heightened threat of increased marine litter,” among other complaints. Japan also expressed its concern over the recycling crisis. China, however, has doubled down, saying it plans to expand its import ban on scrap materials to cover more categories. It says that waste facilities that don’t meet environmental standards are still rampant, leading to water and air pollution. “The problem of foreign garbage is loathed by everyone in China,” an official in charge of international cooperation at China’s environmental protection ministry said at a press briefing when the ban was first announced. Since China’s ban, exports from the U.S. and other Western nations to countries like Malaysia, Vietnam and India have surged. But after it was revealed in October that a large amount of illegal dumping had occurred in Malaysia, many developing nations have hinted they intend to follow in China’s footsteps with their own restrictions on recyclable waste. At any rate, the policy is forcing rich nations to reconsider what to do with their waste in the long term now that they can no longer dump their scrap waste in China’s backyard.


Ex-Nissan chief Carlos Ghosn to be served with fresh arrest warrant

Abstract: Tokyo prosecutors have decided to seek a fresh arrest warrant for former Nissan Motor Co. Chairman Carlos Ghosn on suspicion that he failed to report around ¥4 billion ($35.5 million) of his remuneration in its securities reports for the three years through March, sources close to the matter said Tuesday. Ghosn, who is being held at the Tokyo Detention House, has already been accused of breaching the Financial Instruments and Exchange Act after allegedly reporting only ¥5 billion of his ¥10 billion compensation during the five years through March 2015. Along with Greg Kelly, a former Nissan representative director, Ghosn is expected to be served with a fresh arrest warrant on Dec. 10, when the detention period for the pair expires. Ghosn and Kelly, who was arrested along with the former chairman on Nov. 19 for alleged conspiracy, have told the prosecutors that it was unnecessary to report some of the remuneration as the payments had yet to be settled, according to different sources with knowledge of the investigation. The unreported remuneration of the 64-year-old charismatic automotive industry figure, known for rescuing Nissan from the brink of bankruptcy in the 1990s, is believed to total ¥9 billion. In Japan, crime suspects can be kept in custody for 10 days and that can be extended for another 10 days if a judge grants prosecutors’ request for extension. At the end of that period, prosecutors must file a former charge or let the suspect go. However, they can also arrest suspects for a separate crime, in which case the process starts over again. This process can be repeated, sometimes keeping suspects detained for months without formal charges and without bail.

nissan
carlos ghosn
arrest
mitsubishi motors
renault


Tokyo stocks fall further on Wall Street rout

Abstract: Stocks lost further ground on the Tokyo Stock Exchange on Wednesday following an overnight plunge in U.S. equities. The 225-issue Nikkei average fell 116.72 points, or 0.53 percent, to end at 21,919.33, the first close below 22,000 since Nov. 27. It plunged 538.71 points Tuesday. The Topix index of all first-section issues finished down 8.71 points, or 0.53 percent, at 1,640.49, after retreating 39.85 points the previous day. The Tokyo market opened sharply lower, with investor sentiment bruised by heavy sell-offs in U.S. equities traced to receding optimism over a U.S.-China trade deal and growing worries about a possible U.S. economic slowdown, market sources said. The Nikkei briefly dropped over 320 points soon after the opening bell. But Tokyo stocks cut much of their earlier losses later thanks to buybacks, according to the sources. Buying was held in check before the U.S. stock market closure on Wednesday to mourn for former U.S. President George H.W. Bush, who died on Friday, Yutaka Miura, senior technical analyst at Mizuho Securities Co., noted. Ryuta Otsuka, strategist at the investment information department of Toyo Securities Co., said that Wednesday’s drop “was not as bad as I had expected.” Many investors found it difficult to step up selling of Japanese stocks a day after their sharp falls, Otsuka indicated. The market’s downside was supported by buying on dips as Japanese stocks were considered to be undervalued, according to an official of a midsize securities firm. Falling issues outnumbered rising ones 1,469 to 590 in the TSE’s first section, while 60 issues were unchanged. Volume decreased to 1.463 billion shares from 1.551 billion shares Tuesday. JFE Holdings Inc. was downbeat after Mizuho Securities Co. revised down its stock price target for the steel-maker on Tuesday. Also on the minus side were convenience store operator FamilyMart Uny Holdings Co. and cosmetics maker Shiseido Co. By contrast, apparel shop operator Adastria Co. jumped 11.15 percent after announcing Tuesday that its sales in November grew 3.6 percent from a year before on a same-store basis. Other major winners included drugmaker Eisai Co. and mobile phone carrier SoftBank Group Corp. In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average sagged 190 points to end at 21,880.


Dollar almost flat around ¥113.10 in late Tokyo trading

Abstract: The dollar was almost flat around ¥113.10 in Tokyo trading late Wednesday, after overcoming the early sluggishness thanks to Tokyo stocks’ resilience. At 5 p.m., the dollar stood at ¥113.07, down from ¥113.10 at the same time Tuesday. The euro was at $1.1330, down from $1.1380, and at ¥128.13, down from ¥128.72. After falling below ¥112.70 in early trading, the dollar rebounded above ¥113 later in the morning due to purchases from domestic importers, with the benchmark 225-issue Nikkei stock average recouping some earlier losses. For most of afternoon trading, the greenback moved above ¥113, with the Nikkei continuing to show some resilience on its downside, traders said. With the dollar’s topside capped by a fall in long-term U.S. interest rates, concerns over an economic slowdown in the United States has emerged due to an inversion of two- and five-year U.S. Treasury yields, a currency broker said. The dollar “failed to advance (versus the yen) substantially” before the closure of the U.S. bond and stock markets on Wednesday, the broker added.


How could Carlos Ghosn possibly have hidden billions of yen from Nissan?

Abstract: How could one of the world’s most visible employees go about hiding billions of yen worth of salary and benefits paid to him by one of the world’s biggest companies, without the company knowing it? Two weeks after Tokyo prosecutors arrested Carlos Ghosn for allegedly underreporting his compensation, that question is still unanswered. What is certain is that Nissan Motor Co.’s own corporate governance rules gave unusual powers to its former chairman, a business celebrity who was given extraordinary deference for having once rescued the automaker from financial ruin. Those powers included near-total say over how much — and how — he was paid, according to Nissan’s own internal rules. Several people familiar with the prosecutors’ investigation now say the probe appears to hinge on a relatively arcane point of accounting: whether retirement payments were properly booked. Whether or not Ghosn broke Japan’s securities law by feeding the wrong numbers to Nissan’s board and its accountants (at this point, the allegations are unproven), corporate governance expert Jamie Allen says the deeper question is how anyone could have gotten away with something like that. “It all comes back to a lack of internal controls,” said Allen, head of the Hong Kong-based Asian Corporate Governance Association. “If the board genuinely didn’t know that the disclosure of his remuneration was inaccurate, that doesn’t say much for governance. And if they did know, they should take collective responsibility for the failure.” Fights over pay have been a constant for Ghosn almost since the moment he took over in 1999 as chief operating officer of the then-troubled Japanese automaker. Early on, he caught flack for rewarding Nissan’s senior managers for performance instead of seniority. Later, in 2010, when Japan’s new rules on disclosure of executive compensation outed him as the country’s top-paid boss, he caught flack again. The $10 million he reportedly made that year might not have been out of line by Western standards, but it rankled in Japan where the brash executive was seen to be taking home six times what Toyota Motor Corp.’s chairman made. It now appears that even those numbers were understated. Ghosn’s salary had actually been much higher before public disclosure was required; to minimize criticism, a plan was devised to defer about half his annual pay until after retirement, keeping the numbers off the books, according to people familiar with the investigation. Ghosn has denied any rules were broken around deferred compensation, people with direct knowledge of the case have said. His defense is that the amount of such pay wasn’t certain, and therefore it was appropriate to omit it from securities filings, they said. Ghosn hasn’t had an opportunity to respond in public because he’s held in detention. The law allows people to be kept for weeks without being charged. Prosecutors were alerted to Ghosn’s alleged wrongdoing after a whistleblowing tip from inside Nissan. The timing prompted some analysts to say the scandal may have been manufactured in order to block a merger that Ghosn was advocating between Nissan and its partner, Renault SA. If Ghosn’s celebrity once helped him rally Nissan’s troops, it may have also made misbehavior easier. Inside the company, an unquestioning cult-of-Ghosn took root, according to several people familiar with the situation. By 2015, when Japan introduced its corporate governance code, it was clear even to some within the company that Nissan was an outlier in terms of how much control it gave its chairman. “We had governance in name only,” Nissan Chief Executive Officer Hiroto Saikawa told the media after Ghosn’s arrest. “Ghosn’s team thought that the best way to ensure governance was to concentrate power,” said Satoshi Egi, an expert on corporate compliance at Tokyo’s NLI Research Institute. “It works when you have outstanding leadership. And it’s risky when you don’t.” Zuhair Khan, an analyst at Jefferies Inc. in Tokyo, had been warning investors for years that Nissan stood out for its poor governance. Two years after the nation adopted its corporate governance code, Khan says Nissan was the only big, global company with a board that still didn’t have the required two independent directors. Independent directors were eventually hired, but only after an embarrassing recall scandal in 2017, when it was discovered that vehicle safety inspections had been performed by unqualified workers. The qualifications of the new board members also raised eyebrows. One was a retired government bureaucrat. The other was a former race car driver and ex-model. “It was as if they purposely picked people who wouldn’t be able to ask questions,” Khan said. The corporate governance code is closer to a wish list than a set of actual regulations. Firms aren’t forced to comply, but must give shareholders an explanation in any instance where they haven’t. One guideline Nissan chose not to adopt was setting up independent advisory committees on executive pay. The omission gave Ghosn broad power to decide how much he was paid. It also allowed him to determine the compensation of the people who were supposed to keep him in check. Nissan’s Corporate Governance Report says plainly: “The chairman of the board determines the compensation of each director” based on consultation with the company’s two other top officials — one of whom was Greg Kelly, the American arrested along with Ghosn. Employees in Nissan’s finance department weren’t responsible for verifying the details of C-Suite salary numbers disclosed in annual securities reports, according to one person familiar with the company’s practices. That was the board’s job, but no one dared to ask questions, the person said. Nissan spokesman Nicholas Maxfield declined to comment for this story. Hui Chen, a compliance expert and former attorney at the U.S. Department of Justice, says the bigger and more complicated the company, the more opportunity for misbehavior by top executives. Sprawling businesses like Nissan may have hundreds of subsidiaries, operating in dozens of countries, each with its own sets of books and payrolls — which is why, she said, oversight is so important. “The general fact pattern here indicates that questions should be asked about Nissan’s corporate governance and corporate culture,” she said.

carlos ghosn
nissan
corporate governance
renault