Two more Swiss state-owned transport companies have been ordered to pay back more than CHF50 million ($51 million) in wrongly claimed subsidies. The authorities are also looking into the possibility of criminal prosecutions in connection with the worsening subsidies scandal.
This content was published on
2 minutes
swissinfo.ch/mga, ug
Government auditors have targeted Swiss Federal Railways and the regional transport operator BLS, which is mainly owned by canton Bern, for irregular subsidy payments stretching back to 2011. The crackdown follows the recent PostBus scandal that saw the company pay back CHF200 million to state coffers in 2018 after fraudulent payments were uncovered.
The BLS company, which operates the second-largest suburban railway networkExternal link in Switzerland, and its subsidiary Busland must return CHF43.6 million to the state pot. Federal Railways has been ordered to refund CHF7.4 million.
The companies have been ordered to overhaul their subsidy processes and controls. They have publicly apologised for their shortcomings.
It added that was considering criminal charges in connection to sections of network that link the public network to private company premises.
An initial audit found discrepancies in this area amounting to a low single-digit million franc sum. While the issues mirror those of the Post Office-owned PostBus in some respects, the transport ministry on Friday saidExternal link that the new breaches are not of a comparable scale or dimension as the earlier corruption case.
The government is undertaking an overhaul of subsidies paid to public transport companies after being roundly criticised for failing to spot the PostBus problems early enough. But it has rejected parliamentary committee calls to create a new office to specifically oversee state-owned firms.
Popular Stories
More
Swiss oddities
Mennonite movement turns 500 in Zurich, where it all began
Train vs plane: would you take a direct train between London and Geneva?
Eurostar is planning to run direct trains from Britain to Germany and Switzerland from the early 2030s. Would you favour the train over the plane? If not, why not?
Zurich laboratory finds intestinal bacteria in coffee machines
This content was published on
Last year, the Zurich Cantonal Laboratory found defects in one in four samples of milk drinks from coffee machines. Too many intestinal bacteria were found in a number of samples.
SWISS Belgrade-Zurich flight forced to land in Germany
This content was published on
Swiss flight LX1413 from Belgrade to Zurich had to make an unscheduled landing today in Friedrichshafen, southern Germany.
New Swiss 3D simulation tool offers better landslide forecasting
This content was published on
A new 3D simulation tool is enabling much more accurate avalanche forecasts. The model, which proved its worth during the landslides in Brienz (GR) and Blatten (VS), could lead to more effective management of alpine risks.
Swiss price-fixing construction cartels fined millions
This content was published on
The Federal Competition Commission has wrapped up its last two investigations into an illegal price-fixing cartel in the construction industry.
Swiss Post CEO rejects blame for PostBus subsidies scandal
This content was published on
The head of Swiss Post, Susanne Ruoff, has refused to step down for errors she admits were made at the PostBus subsidiary company.
This content was published on
The head of Swiss Post, Susanne Ruoff, has stepped down on Friday with immediate effect over a subsidies scandal at company’s subsidiary, PostBus.
This content was published on
Swiss Economics Minister Guy Parmelin has announced an administrative inquiry into huge government losses related to the Swiss merchant navy.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.