New misconduct allegations brought by Japanese prosecutors say that someone helped the sacked Nissan chairman Carlos Ghosn obtain a letter of credit (L/C) to help bail him out of financial difficulties.

Prosecutors in Japan have not released the name of the person who helped obtain the L/C, but according to Reuters it is believed to be a prominent Saudi businessman, Khaled Al-Juffali.

L/C facilitation

Ghosn was arrested for a third time in late December when prosecutors accused him of aggravated breach of trust in transferring personal investment losses to Nissan in 2008 when he was dealing with losses of some US$16.6 million incurred on a swap contract he had with a bank. Prosecutors did not name the bank.

Al-Juffali is believed to have helped out, facilitating an L/C for Ghosn. Another L/C was arranged for a company run by Al-Juffali who later received US$14.7 million in Nissan funds in four instalments between 2009 and 2012.

Breach of trust

Prosecutors say that payments were made to accounts in which Ghosn and the person believed to be Al-Juffali had personal interests.

This "breached trust, and inflicted damage on the property of Nissan," the prosecutor's statement said.

Saudi Nissan dealership

Al-Juffali is majority owner of a company called Al-Dahana which owns half of a regional joint venture called Nissan Gulf with the other half held by a wholly owned unit of Nissan Motors.

He is also vice chairman of the Saudi conglomerate E A Juffali and Brothers and a member of the board at the Saudi Arabian Monetary Authority.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.