NEWS

Intrasoft’s web of connections in Europe comes under the microscope

Three weeks ago, the Finance Ministry’s police squad (SDOE) asked Kokkalis’s company Intrasoft for detailed data on its books, its income and expenditure records, invoices, recent investments and information on the administration of European programs. Intrasoft has not yet sent in the files and, according to SDOE sources, the next step will be an on-the-spot investigation at Intrasoft headquarters. Using Intrasoft as a Trojan horse, the Kokkalis group has secured contracts for major European programs (chiefly for the European Parliament), for which invoices were issued in the name of another company, based in Luxembourg, in which Kokkalis had shares. Using Intrasoft’s technology and long experience as a spearhead, Kokkalis obtained various contracts which he then subcontracted to Intrasoft International, set up in 1996 to provide computer technology, telematics, telecommunications and software services. By the end of September 2001, the company employed 256 people. Intrasoft SA’s share in Intrasoft International was just 19.9 percent. The main shareholder, with 39.7 percent, is Intrapar SA, in which Kokkalis has a 90-percent share. The other shareholders in Intrasoft International are Omnitech Investments Ltd (15 percent), Sinstar SA (24.8 percent), of which Kokkalis is chairman, and various others with 0.6 percent. According to its company profile, Intrasoft International is Intrasoft’s chief subcontractor in European Union projects. The conclusion drawn from the above is that Intrasoft, a listed company, is used to support a sister company controlled by Kokkalis. The question is how a listed company obtains European programs and transfers them to an unlisted company in which it holds a small share, and in which Kokkalis has the majority share. This relationship clearly works in Kokkalis’s favor and raises questions regarding the rights of the minority shareholders and small investors. That is, in programs undertaken by Intrasoft and valued at several million euros, shareholders reap only 20 percent of the profits, instead of 100 percent, while the lion’s share goes to businesses controlled by Kokkalis. Intrasoft International also has a 99.9-percent share in Intrasoft International Belgium (the remaining 0.10 percent belongs to Intrapar) which has 100 percent of the shares in PEBE SA, which in turn owns 74.99 percent of Switchlink SA. Intrasoft International Belgium provides exactly the same services as Intrasoft International SA. Chairman of all the above companies is Socrates Kokkalis. Intrasoft International also has a 99.9-percent share in Intrasoft International Belgium (the remaining 0.10 percent belongs to Intrapar) which has 100 percent of the shares in PEBE SA, which in turn owns 74.99 percent of Switchlink SA. Intrasoft International Belgium provides exactly the same services as Intrasoft International SA. Chairman of all the above companies is Socrates Kokkalis.