GULF AIR could be brought under a parliamentary watchdog, with MPs saying they are unhappy with how the airline is being run. They say they have "clear evidence" of a conflict of interest in the appointment of an international consultancy, whose regional head is also a Gulf Air board member.
MPs also want more Bahrainis in decision-making roles and a review of the early retirement packages offered by the stricken airline under its recovery plan.
Parliament's financial and economic affairs committee issued a statement yesterday, saying it would be reporting in detail on the Gulf Air situation once parliament resumes in October, after the summer recess.
It said it would also be recommending proposals for "the necessary monitoring" of the airline's performance.
The statement follows an extraordinary meeting of the committee to discuss the difficulties of Gulf Air - which is looking for its third chief executive in less than a year, after the resignation of Andre Dose last month.
MPs said they would be writing to the airline to broach a variety of issues.
But one of their most pressing concerns is the role of Roland Berger Middle East managing director and partner Michael Wette - who is also a Gulf Air board member.
The committee said it had "clear evidence that there is a conflict of interest between the airline and the consulting company".
Committee member Isa Ahmed Abu Al Fatah Ali told the GDN that Mr Wette's dual role was the main cause of concern for him and his colleagues, adding that they were "not happy" with the current situation.
"There is a conflict of interest. There is one board member who at the same time is working as a consultant to the company," he said.
"We are writing to ask them for a written explanation for that."
Mr Wette was appointed in December last year to represent Bahrain's holding company Mumtalakat on the airline's board.
A team of consultants from Roland Berger are currently being employed by Bahrain to aid in a major restructuring effort aimed to stem losses of more than $1 million (BD377,000) per day.
Gulf Air chairman Mahmood Al Kooheji told the GDN last month that the board of directors had discussed the issue of conflict of interest.
"The Roland Berger consultant issue was debated and we had a decision from the board that we will not have a conflict continuing," he said.
"In future, if we have a member on the board then we will not invite Roland Berger for any new assignments, but whatever work we have ongoing has to be completed."
On Sunday, Gulf Air issued a statement dismissing media reports which it said questioned the airline's use of international consultants and the motive behind appointing them.
It said international consultancies hired by the airline had brought a "wealth of knowledge and experience" to its restructuring efforts.
The parliamentary committee also voiced concern at "the increasing role of expatriates in the executive administration of the airline" and said it was looking for assurances that Bahrainis with skills needed by the company would be encouraged to stay on.
Gulf Air head of corporate affairs and president and chief executive's office head Hisham Abu Al Fateh called for those with queries or suggestions to contact the airline directly rather than go through the Press.
"Gulf Air management is very happy to see the overwhelming and sincere concern that everyone has to making this airline successful and the management welcomes ideas, suggestions and constructive criticism that will enhance its operations as well as its services as an airline," he said.
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