Air France-KLM CEO probed in fraud investigation

12th July 2006, Comments 0 comments

PARIS, July 12, 2006 (AFP) - The chief executive of airline Air France-KLM, Jean-Cyril Spinetta, is to be questioned by a French judge under an investigation into money laundering and illegal employment practices at a bankrupt airline security group, a source close to the case said on Wednesday.

PARIS, July 12, 2006 (AFP) - The chief executive of airline Air France-KLM, Jean-Cyril Spinetta, is to be questioned by a French judge under an investigation into money laundering and illegal employment practices at a bankrupt airline security group, a source close to the case said on Wednesday.

Spinetta is to be interviewed in the next few days by financial judge Hervé Loureau in Paris who might put him under investigation, a first step to laying charges, relating to a probe into practices concerning a company called Pretory.

He is suspected of "organised money laundering, involvement in undeclared employment, and of being an accessory to passive corruption and influence peddling," the source said.

The French news magazine L'Express had carried a report to the same effect.

The judge is investigating contracts between Air France and Pretory for the supply of on-board security agents for flights going to the United States in the wake of the September 11 attacks.

The sales of Pretory increased sharply as a result of the contracts and the group had 600 employees at one point. In December 2003, it was placed under bankruptcy administration for liquidation of its assets.

Four people, including the former chief executive and founder of Pretory, Jacques Gaussens, have already been put under investigation.

Copyright AFP

Subject: French News

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