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Statement of charges against Mascrenhas made public

Continuing its attack on the suspended Air-India managing director Michael Mascrenhas, the civil aviation ministry on Friday made public a statement of charges made against him by the chief vigilance officer.

Mascrenhas was not available for comments, but he had said he would challenge the vigilance inquiry against him on the ground that it had been done by a person junior to him.

The CVO's statement charged that the commission to the London-based Welcome Travels, Air-India's GSA, was increased in May 1993 from 3 per cent to 5 per cent for the year April 1992 to March 1993 on post facto basis when Mascrenhas was the commercial director.

Though the suspended MD had justified this increase on account of flight cancellations due to Ayodhya incident and flight engineers strike in February/March 1993, the CVO's statement said the happenings in Ayodhya and the flight engineers strike could not have been known to him in August 1992.

The higher commission at 5 per cent remained unchanged for the next five years involving payment of 'inadmissible' commission of over Rs 80 million to the GSA, it said, adding that the commission was once again increased in May 1998 from 5 to 7 per cent on post facto basis for the year April 1997 to March 1998.

Though Mascrenhas justified the increase stating that A-I capacity between UK and India in 1997-98 had been reduced by 42 per cent, documents during investigation showed that reduction was only 3 per cent.

This 'unjustified' increase from 5 per cent, which remained valid for three years, involved an 'inadmissible' payment of over Rs 130 million.

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