French politicians want blood after Renault scandal

Carlos Ghosn. Photo / AP

French politicians yesterday insisted that Renault bosses must be punished for their "unbelievably amateurish" handling of the phantom industrial espionage saga.

Leading figures in Renault have apologised, and given up bonuses and stock options, after admitting that they hastily fired three executives in January on the basis of what turned out to be bogus accusations of spying.

As the largest shareholder in Renault, with 15 per cent of equity, the Government is in a strong position to demand dismissals once an independent investigation is complete.

Paris is, however, unwilling to push for the resignation of the company's charismatic president and chief executive Carlos Ghosn.

The Government may demand the head of the company's number two, Patrick Pelata, after the investigation. The three executives were publicly and humiliatingly fired in January, accused of taking money to reveal secrets of Renault's market-leading electric car strategy.

After an investigation, the Paris public prosecutor, Jean-Claude Marin, confirmed on Monday that the accusations were "entirely groundless". Investigators believe the initial anonymous letter may have been concocted as part of an elaborate fraud by senior Renault security officer Dominique Gevrey, who was arrested last Friday and has been formally accused of "conspiracy to defraud".

Investigators believe that just over €300,000 paid by Renault to an anonymous "deep throat" may have been embezzled by Gevrey.

Ghosn said the three fired executives would be compensated and their jobs and "honour" would be restored. Two of the men are ready to return to Renault.

The third, and most senior, Michel Balthazard, a former member of Renault's "operating board", says he will not go back.

- INDEPENDENT