Ship owner charged with fraudulently claiming Swiss state funds
Switzerland is currently paring back its merchant navy fleet.
swiss-ships.ch
Switzerland has filed charges against a ship owner for allegedly submitting fraudulent claims for state financing guarantees. The 66-year-old is accused of inflating the construction and purchase prices of vessels to unfairly win a bigger credit facility from the Swiss state.
This content was published on
1 minute
swissinfo.ch/mga
Switzerland underwrites the debts of several ocean-going vessels that make up its merchant navy, which was formed just after the Second World War to guarantee supplies to the landlocked country. In return, Switzerland retains the right to requisition these ships in times of crisis.
The credit guarantee system was disbanded in 2016 following allegations of fraud and complaints that costs had spiraled out of control.
On Monday, Swiss prosecutors announced proceedings against one ship owner surrounding the award of CHF130 million ($132 million) worth of guarantees. The accused, who has not been identified, denies the charges of forgery of documents and unfaithful business practices.
Switzerland is also in the process of downsizing its merchant navy fleet following a downturn in shipping freight and the emergence of other means to keep the country supplied. The demobilisation process will cost CHF300 million.
At the end of 2016, Switzerland had 47 ocean-going vessels with guaranteed loans totaling CHF794 million. Following the sale of the latest batch of eight ships (announced last month), the fleet will be pared back to 20 vessels, with debt obligations amounting to CHF374 million.
Five people charged in connection with deadly Swiss rockslide
This content was published on
Five people have been charged with multiple negligent homicide in connection with the deadly Bondo rockslide that occurred seven years ago.
Mountaineer dies after 100-metre fall from Matterhorn
This content was published on
A women fell down the east face of the iconic mountain on Thursday, from an altitude of some 3,460 meters above sea level.
Swiss court ruling: only mothers have legal say in abortion cases
This content was published on
Switzerland’s highest court has ruled against a man who had sued his ex-partner for terminating pregnancy at an advanced stage.
Shooter and mountain-biker to carry Swiss flag at Olympics opening
This content was published on
Sports shooter Nina Christen and mountain-biker Nino Schurter will be the Swiss delegation’s flag-bearers at the opening ceremony of the Paris Game on Friday.
UBS questioned by US Senator over $350 million tax evasion case
This content was published on
UBS has been asked by a powerful US lawmaker about whether Credit Suisse failed to report an American accused of evading taxes on $350 million in income.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Demobilising Swiss merchant navy to cost another CHF100 million
This content was published on
Eight more ships, from the Massmariner company, are to be sold off, bringing the size of the fleet down to 20. The government has asked parliament to stump up another CHF128.7 millionExternal link to cover the outstanding debts of the ships. Following their sale, losses are expected to amount to CHF100 million. In 2017, parliament…
This content was published on
Two more ships in Switzerland’s maritime commercial fleet are in financial difficulties, according to government reports.
This content was published on
The Swiss merchant fleet, whose home port is Basel but whose ships never sail within sight of Swiss soil, was founded in 1941 when, as the war escalated, finding new avenues to bring essential economic supplies into Switzerland was paramount. Today the fleet, which contributes just a fraction to Switzerland’s gross domestic product compared with…
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.