Saudia denies financial abuses

Saudi Arabia’s official carrier has denied local press reports that state auditors are investigating financial abuses involving overspending by nearly SR5 billion ($1.3 billion), a newspaper reported on Monday.

A spokesman for Saudi Arabian Airlines said the funds were among known expenditures that were mentioned in the company’s closing accounts and presented to Shura (appointed parliament).

“Excess spending of SR5 billion does not make sense,” said Abdullah Al-Ajhar, assistant director general of the airlines.

“These funds were spent on five categories including aircraft lease, meals for passengers, jet fuel, commissions for travel and sales agents, and commercial advertisements,” he told the Saudi Sabq newspaper.

The paper said Al-Ajhar also denied reports that a company executive had been arrested on swindling charges. “So far, I do not know any thing about this issue…it is the talk of websites and is inaccurate.”

In an unsourced report on Sunday, the Saudi Arabic language daily Okaz said government auditors are probing the airlines over alleged mismanagement of funds involving overspending of more than SR five billion.

It said examination of the financial accounts of the government-controlled firm showed spending authorized for the carrier’s officials surpassed SRfive billion.

“Auditors in the country are investigating the expenses files of Saudi Arabian Airlines, especially those involving spending by its officials after the closing accounts showed there is overspending by Srfive billion,” the paper said.

Saudi Arabian Airlines, based in the western Red Sea port of Jeddah, is one of the largest carriers in the Middle East, with a fleet of nearly 150 aircraft. It was set in 1945 as a government venture but it has plans to go public.

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