Finance Ministry inspectors have yet to conduct checks on the finances of Myconos Municipality despite a request to do so more than a year ago by a prosecutor who has been investigating alleged corruption and embezzlement at the local authority, judicial sources told Sunday?s Kathimerini.
According to the prosecutor Efi Salma?s probe, the municipality had for years been failing to collect local taxes from hotels and rooms-to-rent. She has also uncovered evidence that appears to indicated that 300,000 euros paid by private businesses to hire stretches of beach so they could rent out sun loungers and umbrellas has gone missing.
Another 100,000 euros paid by some hotels that were charged local taxes is also unaccounted for, sources said. In both cases, it appears that municipal employees embezzled the companies by using bogus invoices to justify the payments.
Salma?s investigation began more than a year ago and last August issued charges against six public officials in connection with the construction of dozens of illegal homes on a number of Cycladic islands, including Myconos. The results of the prosecutor?s probe indicate that the fines for illegal construction should have totaled about 20 million euros but in fact no penalty notices were issued.