Tuesday 12 January 2010

Prosecutor investigates business leader for fraud

(Agencies) The Public Prosecutor (fiscalía) has requested an alleged fraud by Air Comet, owned by Gerardo Díaz Ferrán (photo), president of the CEOE (Confederación Española de Organizaciones Empresariales, or Spanish Confederation of Business Organizations, the overall organization for, mainly, large business). The airline, part of Ferrán's Marsans company, is alleged to have continued selling tickets when it had become inoperative and its planes had been embargoed by a British court, leaving some 7000 passengers grounded over the Christmas holidays. The legal measure supports a denuncia by several consumer organizations. Díaz Ferrán nevertheless continues to cling to his job as president of the CEOE.>
A British court published a sentence on December 18 that prohibited selling tickets and grounded Air Comet's planes three days later, December 21, unless €17 million was paid to Nord Bank, who was demanding payment for the aircraft rentals.

The airline insists it did not sell tickets after the 18th but consumer organizations say that even if it had done so, it accuses ir Comet of selling ticketsprior to that date 'in the knowledge that the company was insolvent'. Employees of the company, some of whom haven't been paid for three months, have stated through their unions that new staff was still being taken on well after that date.

The Public Prosecutor in charge of the case, Jesús Alonso, has also requested information from the Ministry  of Development to ascertain what measures were taken regarding the company's insolvency. For its part, the ministry declared that an investigation was opened on November 6 but the airline met legal requirements regarding safety and its financial situation did not require its intervention.

Díaz Ferrán nevertheless continues to cling to his job as president of the CEOE, which is about to turn into a media frenzy with demands for his resignation coming from all sides except the business leaders he represents.

 

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