Exposed: latest ABTA scandal

TODAY Travel Weekly lifts the lid on another embarrassing ABTA financial scandal.

Agent Jitty Trehan, the former boss of Chester-based Spear Business Travel, stands to lose £25,000 after suspected con men – introduced to him by a member of staff at Newman Street – bought his business then used it to fleece unsuspecting clients.

Yet red-faced ABTA bosses are insisting Trehan foots the bill, even though they allowed the three alleged perpetrators to take bookings unchecked for two months. Furthermore, two of the men were known to ABTA through their connection to another travel company which mysteriously failed last year.

The apparent scam emerged six weeks ago and since then the ABTA staff member who brokered the deal has been suspended.

The scandal is a further blow to ABTA’s credibility after the association was rocked by a £1 million fraud allegedly orchestrated by its ex-legal chief Riccardo Nardi (Travel Weekly February 23). Back then chief executive Ian Reynolds said: “This is a well-run ship with an excellent crew. There is no culture of corruption in this building.”

In a statement to Travel Weekly, Reynolds said the latest incident – which is believed to have seen the buyers of Spear Business Travel take payments for bookings that were never made – would not affect ABTA’s already depleted funds.

But he admitted the scale of the losses is still unknown, and could exceed Trehan’s £25,000 bond.

“We are receiving claims from operators and don’t know the full value yet,” he confessed.

ABTA refused to comment on why the men who took over the agency were not vetted. Reynolds claimed Trehan was responsible for the debts as no new bond had been put in place.

Stunned Trehan said he was forced to go public on the scandal after Newman Street refused to accept liability.

“ABTA needs to put its house in order,” he said. “Why should I pay for this when the association admits I had nothing to do with the fraud? Someone from ABTA put me in contact with these buyers.”