RENAULT says its number two executive will be demoted while three others will be sacked in the wake of an industrial espionage fiasco at the French car-maker’s electric vehicles program.
Patrick Pelata’s offer to resign as chief operating officer was accepted but he will stay within the company, the firm said in a statement, adding that three executives from the group’s security service will leave.
Three other top executives will be relieved of their duties while their fate is decided, it said.
The announcement came after an extraordinary board meeting at Renault to study an audit committee’s report on the scandal that saw three senior executives wrongfully accused of selling industrial secrets.
The meeting also agreed on a deal to compensate the executives falsely accused, Renault said.
The French Government, which owns 15 per cent of Renault, had said yesterday the executives responsible for the embarrassing debacle should be sacked.
Finance Minister Christine Lagarde said the audit report showed the company’s management style was “dysfunctional” and revealed the need for both a “revision of the governance rules and for sanctions”.
Chief executive Carlos Ghosn went on prime-time television last month to apologise “personally and in Renault’s name” for the affair, but said he had turned down an offer by Pelata to resign.
Mr Ghosn said he and Pelata would forgo their 2010 bonuses and Renault would review its security procedures and take disciplinary measures against three implicated security employees.
The French car giant in January sacked Michel Balthazard, Bertrand Rochette, and Matthieu Tenenbaum after accusing them of accepting bribes in return for leaking secrets about Renault’s electric vehicle program.
The Government branded the affair “economic warfare” and some pointed the finger at China, drawing an angry denial from Beijing.
But in March the firm apologised to the managers after it emerged police had found no trace of bank accounts the accused men were alleged to have held and that the source of the spying allegations may have been a fraudster.
Investigators later questioned three Renault security managers and one was placed under formal investigation on suspicion of organised fraud.
Renault and its Japanese partner Nissan have staked their future on electric vehicles and plan to launch several models by 2014 to meet rapidly rising demand for more environmentally friendly methods of transport.
They have invested €4 billion ($5.48 billion) in the program.
Nissan and Renault joined forces in 1999. Renault currently owns a 44.3 per cent stake in its Japanese partner, while Nissan holds 15 per cent of the French auto maker’s shares.
Resurrecting a sleepy small-town newspaper is a tough job. But it’s even tougher when Fox News chairman Roger Ailes uses the News Corp. security detail to spy on you. According to Gawker’s John Cook and Hamilton Nolan, Ailes has been doing just that to his staffers at the Putnam County News and Recorder, one of two small Hudson Valley-area newspapers owned by Ailes and his wife Elizabeth, near where they planned to retire. Cook and Nolan write “more than 10 full-time and freelance staffers have left the Ailes’ Putnam County papers in the last 10 months,” including former News and Recorder staffer Joe Lindsey, a former Weekly Standard editorial assistant brought in personally by Ailes to turn the paper around. After Lindsey quit in January, he was driving to get lunch when he noticed a black Navigator following him. Suspicious, he eventually “got a look at the driver, who was a News Corporation security staffer that Lindsley happened to know socially. Lindsley continued on his way and later called the driver to ask if he was following him. The answer was yes, at Ailes’ direction.”
In addition to the car incident, there were other indications the Aileses were tracking the movements of their staffers. In March, Roger Ailes “confronted the three staffers and accused them of badmouthing him and Elizabeth during their lunch breaks” and multiple staffers told Gawker they had “reason to suspect that their e-mail was being read and that rooms in the News and Recorder offices were bugged.”
As if that wasn’t weird enough, try this on for size: per Cook and Nolan’s piece, the Aileses’ redesigned layout of the “single unisex bathroom in the papers’ headquarters features portraits of Elizabeth and Roger on the walls, watching you, while you poop.”
The letter accompanied a subpoena delivered this week to an individual in Boston — one of a number of individuals whom investigators have pressed or tried to press for information on WikiLeaks and who have been served with subpoenas this week. A copy of the subpoena was provided to The Washington Post with the name redacted.
Though the letter does not name WikiLeaks or Assange, sources said the subpoena was issued in relation to the probe.
The letter makes clear that an array of charges are being considered, in part, experts said, to avoid First Amendment challenges that would arise with a prosecution of WikiLeaks under the Espionage Act. That 1917 law makes it a crime to “communicate or transmit” sensitive information to an unauthorized party, and using it would probably set up a battle over an individual’s right to speak freely.
“If the Justice Department concludes that a crime has been committed, it will twist itself like a pretzel to avoid using the Espionage Act, not only because it is old and vague but because it raises a number of First Amendment problems for prosecutors,” said Abbe D. Lowell, a Washington defense attorney who has handled leak cases.
U.S. officials would not comment on any subpoenas but indicated that prosecutors are likely to carefully weigh any decision to file charges under the Espionage Act, in part because of First Amendment concerns.
“The Justice Department has decided to attack on many fronts at once,” said Assange, in a phone interview from London. One reason, he alleged, “is because it is difficult to extradite someone for espionage, espionage being a classic political offense, and most extradition treaties have exemptions” for political acts.
He blasted the investigation, saying, “It is quite wrong to go after publishers and journalists for performing their work.”
In the WikiLeaks investigation, prosecutors have sought personal Twitter account information from Assange, Manning and several others linked to WikiLeaks.
The recipients are not the targets of the probe, sources said.
The April 21 letter, first reported by Salon.com, indicated that the individual served with the subpoena was to appear next month before a grand jury to answer questions concerning “possible violations of criminal law.” Possible violations include conspiracy to “knowingly [access] a computer without authorization” and to “knowingly [steal] any record or thing of value” belonging to the government.
“What they are trying to do is find proof that the WikiLeaks people were in a conspiracy with the leaker to get the information,” Lowell said. “If WikiLeaks is involved in the theft or improper access to the information, that’s not protected under the First Amendment.”
Staff writer Dana Hedgpeth and research editor Alice Crites contributed to this report.
A British man who failed to disclose he had been imprisoned for “industrial espionage” against the Church of Scientology in Denmark has been refused permission to settle in New Zealand.
Robin Scott, 62, and his wife Adrienne, 61, left their Canterbury organic farm in March after the Immigration and Protection Tribunal turned down an appeal against a direction for them to leave New Zealand, The Dominion Post newspaper reported.
In his visitor and work visa application in 2005 Mr Scott failed to disclose he had spent a month in a Danish prison before being deported in 1984.
He told authorities of the “industrial espionage” charge only four years later.
In the incident, Mr Scott waited outside a scientology property in Copenhagen while two others disguised as senior church officials entered and left with teaching materials.
A former church member, Mr Scott intended to use the materials in a business he had set up for those wanting to study scientology from outside the organisation.
The couple both admitted in their 2005 application they had served prison sentences in the 1990s for cannabis charges while living in Britain.
Mrs Scott had been accepted for registration as a teacher in New Zealand, despite the cannabis charges.
The secret post run by the CIA was used for the supremely delicate task of gathering information about the occupants and daily activities at the fortified compound where al-Qaeda chief was reportedly found and killed by the US Navy SEAL commandos this week, The Washington Post reported on Thursday, citing unnamed US officials.
The secret CIA facility was just 50 kilometers (30 miles) from the capital Islamabad and since August last year saw a small team of spies involved in gathering intelligence through satellite imagery and eavesdropping.
The reports went on to say, however, that the CIA post did not play a role in the attack that killed bin Laden and has since been closed down, because of concerns about the safety of CIA assets in the wake of the raid.
According to the report, the on-the-ground surveillance work was so extensive and costly that the CIA went to Congress in December to secure authority to reallocate tens of millions of dollars within assorted agency budgets to fund it.
On late Sunday, US President Barack Obama claimed that Osama bin Laden was killed by US forces on May 1 in a hiding compound in Pakistan, resisting while unarmed. He added that the military mission was conducted without the knowledge of Pakistani authorities due to US mistrust of their purported South Asia ally.
Former officials with Pakistan’s military and intelligence service say the US wrongfully claims it has killed bin Laden in Pakistan as part of a scheme to invade the country for harboring the terrorist leader.
Furthermore, Obama announced in a televised interview that he decided not to publish “disturbing imaged” of bin Laden’s dead body to avert “a national security risk” and due to concerns that it might be used as a “propaganda tool.”
The US has also rejected growing arguments that the US military effort against bin Laden in Pakistan was illegal, describing the operation as “an act of national self-defense.”
