Scores of current and retired bank executives in Greece, as well as former party treasurers for main opposition New Democracy and PASOK parties, face various felony and misdemeanor charges, after financial crimes prosecutors on Friday recommended prosecution for loans extended to the two parties up until 2011.
The development generated a sharp reaction by the two parties, coming a year after a still ongoing investigation into alleged kickbacks to former prime ministers and health ministers in the country – most rivals of the current SYRIZA government – by the Greek subsidiary of Swiss multinational Novartis was then billed by certain Cabinet ministers as the “biggest scandal in the history of the modern Greek state”.
The loans in question use future state subsidies towards the parties as guarantees.
Conversely, the financial prosecutors that requested the charges judged that loans owed to banks by ruling SYRIZA, as well as the Communist Party (KKE), are being serviced.
Recommended charges range from felony breach of faith to moral complicity by past party treasures, nine in total.
An investigation into the same case had been shelved, but was reported in 2017, as per a supreme court prosecutor’s order.
That order, in fact, by high court prosecutor Xeni Demetriou, was sharply criticized, as Parliament in 2013 – under the then Samaras coalition government – foresaw liability exemptions and laxer borrower criteria in cases of loan contacts extended to charities and political parties, among others.
The previous prosecutorial investigation, under the 2013 law’s provisions, found no liability, with the case being shelved.
ND and Kinima Allagis, a successor grouping mostly coalescing around once formidable PASOK, have repeatedly pointed to scandal mongering by the Tsipras government, which continues to fare badly in all mainstream opinion polls.
The Tsipras government and much of the pro-government media has, over the past two or so years, eagerly pointed to “scandals” ranging from Novartis Greece kickbacks, overpriced contracts and media campaigns by the disease control center (KEEL.PO), to various lists of alleged tax evaders and tax dodgers.
