Transport regulator faults AFA split over subsidy risks

A restructuring of the subsidised Frutigen Adelboden bus operator created risks that profits could be shifted away from the publicly funded business, according to an audit report by the Swiss Federal Office of Transport seen by SRF.

The Automobilverkehr Frutigen Adelboden AG, or AFA, operates bus routes in the Bernese Oberland. In 2020, it transferred services such as changing tyres and refuelling to the profit-oriented AFA Service AG and began purchasing them from that company.

In 2023, AFA was split into the subsidised AFA Bus AG and the profit-oriented AFA Reisen AG. Since then, the bus company has had to rent essential infrastructure, including the Adelboden bus station, from AFA Reisen.

The Federal Office of Transport said properties had been transferred without safeguards such as pre-emption rights or non-terminable co-use agreements. This placed public bus services in an “unreasonable dependency” and led to excessive rents, according to the report.

The authority described some of the outsourced services as “unacceptable”. It said the structure created a risk that profits could be shifted to the detriment of the subsidised division.

The canton of Bern had already urgently advised against the restructuring in 2022.

The case has drawn comparisons with the 2018 PostBus subsidy scandal. At that time, the federally subsidised and supervised PostBus Switzerland AG bought services from other companies in its holding structure at excessive prices. This kept profits in the supervised company artificially low and allowed it to receive excessive subsidies.

In both cases, the structure allowed profits to arise in separated companies at the expense of a subsidised public transport company. Unlike in the PostBus case, however, AFA did not keep shadow accounts, and its problems were discovered in time to prevent excessive compensation payments.

The AFA case also involves overlapping management roles. The company’s long serving chief executive and main shareholder at times served simultaneously as AFA chief executive and as chief executive and chair of the board of AFA Service, from which AFA bought services. Since 2025, he has sat on all three companies’ boards and chaired those of AFA Service and AFA Reisen.

The Federal Office of Transport has paid particular attention to a 2024 service agreement between AFA Bus and AFA Reisen worth nearly 500,000 francs. The agreement was intended to compensate the chief executive for overtime from previous years, which the authority called “irritating”.

In a written statement, the former chief executive denied any conflicts of interest. He said it was standard practice and economically sensible for key people to hold responsibilities across companies during transitional periods. He also said he had received no money or unlawful benefits beyond his contractually agreed salary.

Interim chair Alice Kalbermatter said the company was now focused on resolving the conflicts of interest. The former chief executive is to leave all his positions at AFA Bus by the end of 2026 and sell his shareholding.

Casimir von Arx, a GLP member of Bern’s cantonal parliament and a transport politician, questioned whether the restructuring was merely an accident or had been carried out despite warnings.

The Federal Office of Transport said AFA had cooperated, unlike those responsible at PostBus at the time. Because the problems were detected quickly, no excessive compensation payments were made. AFA will not have to repay money, but it must reclassify reserves worth 360,000 francs. The authority has decided against criminal proceedings.

The AFA group has nearly two million francs in subsidies and has comprised three formally independent but closely cooperating companies since 2023: AFA Bus, which operates licensed bus services; AFA Reisen, which handles property, bus tours and taxis; and AFA Service, which provides services including changing tyres and refuelling.