SAirGroup faces legal probe over record losses

SAirGroup may face legal action over large scale losses swissinfo.ch

Zurich's director of public prosecutions has decided to open an investigation into airline conglomerate, SAirGroup, after it revealed massive losses for the year 2000.

The probe could lead to criminal charges being brought against the company, which owns Swissair.

Zurich’s director of public prosecutions, Hanspeter Hirt, told swissinfo on Tuesday that the enquiry would look at how the group presented its “profit and loss account” to determine whether it gave an accurate picture of the real situation the company was facing.

Last week, the canton Zurich-based company revealed that it had made losses of SFr2.9 billion loss ($1.7 billion) in 2000, partly as a result of its investments in a string of loss-making foreign airlines.

The investigation will also examine the legality of severance payments made to departing directors. Hirt said it was impossible to say how long the investigation would take.

SAirGroup refused to comment on the enquiry until after its annual general meeting, scheduled for April 25.

SAirGroup is also facing a private legal action, confirmed Hirt. The Neue Zürcher Zeitung reported at the end of March that an anonymous Zurich lawyer had lodged a legal complaint against the directors of the SAirGroup.

Authorities in canton Vaud have also decided to pursue SAirGroup’s board. They approved on Tuesday a resolution to avoid the board’s discharge from liability in the group’s results for 2000 at the next general assembly. The canton of Vaud currently holds SAirGroup shares worth a total of SFr1,780 million.

All but one member of the SAirGroup board resigned last month in a bid to restore confidence in the ailing company.

swissinfo with agencies