Pension probe to widen
The investigation into the purchase of an allegedly overpriced bond by a pension fund is being widened, it was revealed yesterday, as the controversial transaction became the subject of a furious exchange between the two main parties in Parliament. The head of the independent watchdog for money laundering, Giorgos Zorbas, is set to extend his probe to find out how many firms sold on the bond and took a commission before it was eventually sold by the Akropolis brokerage to the Civil Servants’ Auxiliary Pension Fund (TEADY). TEADY allegedly paid some -5 million too much for the bond and sources told Kathimerini that Zorbas will also investigate the friends and relatives of those involved in the transaction as well as offshore companies registered in Cyprus after it was revealed that the president of Akropolis withdrew -2.4 million in cash on the day that the Capital Market Commission (CMC) partially suspended the firms operation. Akropolis denies any wrongdoing. The subject sparked one of the most heated exchanges seen so far between Prime Minister Costas Karamanlis and PASOK leader George Papandreou. «The corruption, fraud, unaccountability and lack of transparency which has been uncovered the last few days is not a chance occurrence – it has a blue identity,» said Papandreou, referring to the color of New Democracy’s emblem. PASOK has accused the government of appointing officials without the necessary skills to manage pension funds. «A whole mechanism has been set up so that some people – parasites, middlemen, party cadres – could claim commission on workers’ pensions,» Papandreou added. «The era when everything was covered up and kept secret has gone,» said the prime minister, referring to PASOK’s time in power. Karamanlis said that from now on, the appointment of pension fund board presidents will have to be approved by the Bank of Greece and the CMC. «That way we will ensure that the individuals who handle the finances of fund will have the necessary knowledge and experience,» he said.
