When Dany Bahar left Ferrari in 2009 to become Lotus’ new CEO, he knew his main task would be to turn the cash-burning British sports car maker, which at the time was owned by Proton, around.
It took him one year to show the world how he would do it: by launching five new models, including a new Esprit, by 2015 and returning Lotus to profitability by 2014.
Alas, it was not to be. In January, the company was sold to DRB Hicom and in June, Bahar was fired and the new cars were put on hold. A couple of months later, in August, the 40-year old exec sued for wrongful termination and asked for £6.7 million (US$10.8 million in today’s exchange rate) in compensation.
The Malaysian group had not explained the reasons for firing Bahar, at least publicly, but now, according to a report from Bloomberg, it counter-sued and the reasons have finally come to light.
According to the company, Bahar spent about a million pounds renting and refitting two properties in the U.K., while he charged the company for claimed expenses of £1.2 million (US$1.9 million) in travel, including the use of private jets and a helicopter, and spent £3,000 on watches for Lotus managers.
“The spending pattern of the group was not justifiable or sustainable, including the lavish lifestyle of the claimant who appeared to have ignored internal controls”, says Lotus that is asking £2.5 million (US$4 million) from Bahar, adding that he also made damaging statements to the media and breached his contract.
Both parties were contacted by Bloomberg: Bahar’s lawyer Daniel Aherne declined to comment and DRB spokesman Sulaiman Yahya didn’t return emails.
By Andrew Tsaousis
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