Lawmakers have delayed a corruption probe into Bahrain’s Gulf Air until after the summer to avoid shaking confidence in the troubled airline, but are still calling for the immediate sacking of its under-fire CEO, an MP said in comments published on Tuesday.
Abduljalil Khalil, parliament’s financial and economic affairs committee chairman, said up to seven expatriate airline officials face questioning over alleged corruption and mismanagement, Bahrain’s Gulf Daily News reported.
"There are corruption and mismanagement cases affiliated to six or seven expatriate senior officials at the company, among other issues, but that will be put on hold to ensure that Gulf Air makes some money during the summer," Khalil was quoted as saying.
"We don't want to harm the company, especially when we are trying to help it stand, but things will be opened again when the summer is over."
Khalil said the probe would be pushed back until September.
He said MPs are calling for CEO Bjorn Naf’s head due to massive losses the airline continues to make.
MPs in January demanded Naf’s replacement by someone with the right “qualifications and experience”.
Naf was appointed in August 2007 following the resignation of Andre Dose quit after just four months in charge amid mounting financial losses.
In April 2007 Gulf Air announced it was to restructure its operations in a bid to curb losses of $1 million a day. The plan includes destination, fleet and employee cutbacks. Khalil said losses now stood at around $700,000 a day, according to Gulf Daily News.
Naf has said Gulf Air hopes to break even in 2010.