Federal transport office rejects calls for tighter subsidy controls

Switzerland’s Federal Office for Transport will not tighten its subsidy controls despite irregularities at AFA Bus AG, a bus operator in Adelboden, SRF reported. The office considers the case isolated and says the problems were identified quickly.

A review by the Federal Office for Transport found conflicts of interest and possible cross-subsidisation at AFA Bus AG. Unlike in other cases, the issues caused little financial damage and did not lead to criminal proceedings, the office said.

Andreas Windlinger, the office’s head of communications, said the 2018 PostBus scandal had prompted a comprehensive reorganisation of its oversight. The scandal revealed that PostBus Switzerland had manipulated profits through a complex corporate structure and received excessive subsidies.

Since then, the federal government and the cantons have examined transport companies more closely. Similar business practices were found at other operators, including Verkehrsbetriebe Luzern, Bus Ostschweiz AG and railway company BLS.

“Today, we look more closely when ordering services,” Windlinger said. The office now uses a controlling system to assess whether compensation payments are used appropriately and in compliance with subsidy rules. It also conducts audits in individual cases, such as the review of AFA Bus AG.

The federal government provides around 1.1 billion Swiss francs for regional passenger transport, with the cantons contributing a similar amount. The money goes to about 100 transport companies.

The Association of Public Transport, which represents the industry, also rejected the idea of a systematic problem involving the improper use of subsidies. Its spokesperson, Michael Schallschmidt, said the association knew of no other cases apart from AFA.