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After the scandal with the Lucerne public transport company: you should know that now
Are there criminal charges? Are the Verkehrsbetriebe Luzern (VBL) now leaderless? What happens now? The biggest questions and answers about the latest developments in the VBL subsidy debacle.
Mayor Beat Züsli and CFO Franziska Bitzi Staub present their findings from the VBL research report in Kornschütte.
The VBL subsidy debacle is a story of continual escalation. This reached its preliminary climax on Friday morning: three of the five board members of the Lucerne transport company announced their resignation with immediate effect. These are Silvia Beeler Gehrer, Jon Bisaz, and VR President Yvonne Hunkeler. All three had already offered the city council their resignation at the end of September. The city council accepted this, but on the assumption that an “orderly and constructive transition” to the new board of directors would be possible.
As a result, the executive was shocked at Friday’s press conference: she was “surprised and disappointed” by this step. Councilor Martin Merki is also retiring from the VBL board of directors.
The most important questions and answers about current developments:
What is the conclusion of the investigation report that was published yesterday?
According to the expert, those responsible for the VBL “did not behave correctly.” The participation structure was created with the stated intention of “drying up the profits” (see box). As a reminder: the VBL is accused of having received too high a subsidy through so-called calculating interest. Therefore, VBL-Holding has internally credited interests without showing them abroad. Therefore, the main grant provider, Verkehrsverbund Luzern (VVL), demands a payment of 16 million francs from the VBL. You can find the main statements of the report here.
What do the resignations in the Board of Directors mean for the activities of the Lucerne Transport Authority?
The VBL will continue to function as usual, says its director Norbert Schmassmann upon request. “We certainly don’t have to worry about the buses not leaving on time,” he says.
Why do the three directors immediately resign?
Apparently, the city council was caught off guard by the immediate resignation of the three board members. Apparently this step was only communicated on the night of Thursday to yesterday. At the press conference, Mayor Beat Züsli said that he could not understand this action in the short term. However, according to VR President Hunkeler, this step was seen as the “only consistent option” that “the city council was forced” to take. “We were disappointed by the city council many times,” Hunkeler said. He also believes that the city council had enough time to form a transition board of directors: “Now the sole owner is responsible.
Why does the city council accept VR’s resignation offers?
The city council points out that the relationship of trust between the VBL and the city is “very charged.” This is because the VBL went ahead with its criticism of the independent investigation report in September. This is the main reason for the decision of the city council. It takes place regardless of the content of the investigation report.
VBL director Norbert Schmassmann remains in office, at least for the time being. Why?
Schmassmann also offered to resign at the end of September. The city of Lucerne, as the sole shareholder of VBL, does not accept the offer. The city council believes that it is up to the future board of directors to decide the whereabouts of the director. Schmassmann would properly retire in the fall of next year at the age of 65. “I don’t see any reason to quit right away,” he says when asked.
Lucerne’s public transport operators now have no leader?
Lucerne City Finance Director Franziska Bitzi Staub stated yesterday that she was the contact person for VBL management at the moment. This in order to avoid a leaderless state. The time when the interim board of directors will be determined is still open. VBL director Schmassmann says it will become clear in the next few days how he will exchange ideas with Bitzi Staub.
The city council does not file a criminal complaint against those responsible in the VBL. Why not?
The city council justifies the exemption assuming that this is a matter for the two subsidy providers Verkehrsverbund Luzern (VVL) and the Federal Office for Transport (BAV). “It is difficult to assess whether and to what extent the city of Lucerne has suffered damage,” says Mayor Beat Züsli. Also consider that the city would damage its own company with an advertisement. The executive decides against the parliamentary business audit committee on this point: it recommends the presentation of a “report against those responsible for VBL”, but does not specify who it refers to, not even on request.
Does this mean that legal proceedings are off the table?
No. Those responsible for the VBL should expect announcements from other sources. “It can be assumed that the FOT will file a criminal complaint,” media spokeswoman Olivia Ebinger wrote yesterday on request. The VVL, which finances public transport in the canton of Lucerne with public money, is also examining criminal actions, according to the report. It should be clarified if there is criminally relevant behavior. The VVL will coordinate the next steps closely with the federal government. It is not yet clear who a possible complaint will be directed against.
The VBL itself advocates a criminal investigation. “We hope that such a procedure will shed light on many unanswered questions,” Hunkeler said. The management of VBL remains convinced that he has not committed any crime and cites a report by Professor Emeritus of Law Paul Richli and a short report by criminal law expert Stefan Maeder. The resignation of the directors does not change the fact that they “as individuals would face clarification through a criminal investigation,” it says in a VBL statement.
What does the council expect from the transition board of directors?
The interim board of directors should initially consist of three members and then make proposals to complement it. The city council hopes that the new board of directors “will deal with the crisis first”, as Franziska Bitzi Staub puts it. Concretely, this means that you have to reach an agreement with the transport association. For the City Council, however, it is clear: “The subsidies that have risen too much to the VBL must be returned in full.”
