Call for transparency in GF financial status

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Motion to create investigation committee to be tabled in parliament
Consensus has been reached among parliament blocs on a motion to create an investigation committee that would scrutinise the financial health of Gulf AirGulf Air, said Isa Ahmed Abu Al Fatih, Al Asala Deputy.

He told Bahrain Tribune yesterday that the investigation had become necessary since it was found that Gulf AirGulf Air, a public-owned company was not opening its books for the investors.

"Although there is a general agreement, the motion has to be debated and approval of the Parliament is awaited, after it is convenes," said Mohammed Jameel Abdulameer Jhamri, Al Wefaq Deputy.

"The airline was asked to lay off staff and reduce the financial burden. However, we found that while they complied with the decision on one hand, they re-employed the staff on better pay - both locals and expatriates. We find there is some major problem. Inexperience in running an aviation company of this size or lack of exposure to modern management techniques or some other causes is at the root of all the losses. We wait to ascertain from a fact-finding body so that remedial measures can be adopted," Al Fatih added.

"The airline was to be under Mumtalakat BahrainMumtalakat Bahrain, a holding company created to manage all government assets. It was their duty to ensure that investments are made and optimum returns guaranteed. If there is a hiccup in financial operations, then MumtalakatMumtalakat would have to set right the issue and get it on track for financial growth."

"MumtalakatMumtalakat has infused funds into Gulf AirGulf Air. Now it has to be seen what returns have come from there. We will also look into MumtalakatMumtalakat's revenue contribution to the government."

"We are answerable to the people and when we need information Gulf AirGulf Air has to make the figures available. They have been playing it close to their chest for some reason and all we know is that the losses are mounting - these from leaks. Otherwise there is not enough information."

A spokesperson for the airline said Gulf AirGulf Air was aware of its responsibility to keep parliament aware of developments and was actively seeking ways to keep doing so. Motion to create investigation committee to be tabled in parliament.

By Alexander M. Arrackal Staff Reporter

© Bahrain Tribune 2008