Swiss Post’s PostBus will reimburse excess compensatory payments

Swiss Post’s subsidiary PostBus will be reimbursing the Swiss Confederation and the Cantons for the “excessively high compensation” that it received for the provision of public transport services.

In a statement issued yesterday (6 February), Swiss Post explained the background to the case: “During the course of an ordinary audit, the Federal Office of Transport (FOT) examined auditing practices at PostBus Switzerland Ltd. As a result, irregularities concerning financial reporting under subsidy law on regional passenger transport procured during the period 2007 to 2015 were identified at PostBus. This led the CEO of Swiss Post to immediately launch independent enquiries to investigate the matter in detail.

“The initial results of these enquiries confirm the FOT’s findings that the financial accounting under subsidy law at PostBus Switzerland Ltd did not comply with legal provisions during the period 2007 to 2015. PostBus Switzerland Ltd carried out irregular accounting transfers amounting to 78.3 million Swiss francs, which equates to around 3 percent of the total compensation received during this period. PostBus will reimburse this amount in full to the Confederation and cantons. The unlawfully received compensation was used within the PostBus organization for ongoing operations and investment. As far as has been currently ascertained, no personal benefits were gained by individuals.”

Swiss Post CEO Susanne Ruoff commented: “I regret that irregular accounting of services took place at PostBus Switzerland Ltd over a number of years.

“Swiss Post and its subsidiaries must comply with all legal provisions without exception. It is vitally important to us that the Confederation and the cantons can be confident that PostBus is a fair and trustworthy business partner for regional public transport.”

The Swiss Post statement also detailed the steps that the company is taking to remedy the situation:

• Over the coming weeks, Swiss Post and PostBus will review the current accounting concept which was introduced in 2016 and will have it audited by the FOT.
• In accordance with instructions issued by Swiss Post Executive Management, a compliance programme will be established to ensure compliance with subsidy law provisions.

• The appointment of a separate Board of Directors for PostBus Ltd, which will include proven experts in the field of public transport, is under consideration.

• The CEO and Head of PostBus have jointly decided to bring forward the planned departure of the Head of PostBus, which had already been communicated, from the end of April to 5 February 2018.

• The Head of Finance at PostBus was also discharged from his operational duties on the same date.

• These steps will “clear the way for a comprehensive investigation into the matter”.

• Thomas Baur will take over the management of PostBus Ltd on an interim basis with immediate effect. He will also continue his duties as Head of the PostalNetwork business unit and a Member of Executive Management at Swiss Post.

Swiss Post added that “the procedure to appoint a new Head of PostBus is ongoing”.