TEADY board left in the dark
The board members of a civil servants’ pension fund who are believed to have handed over millions of euros too much to buy a government bond were misled on the investment decision, according to evidence obtained by Kathimerini. According to the findings of a Labor Ministry probe, the Civil Servants’ Auxiliary Fund (TEADY) was found to have been responsible for paying 5 million euros too much for a Greek government bond. The head of TEADY, Agapios Simeoforidis, has since stepped down from his post but evidence indicates that he may have had a role in misleading board members. Minutes from TEADY meetings held at the end of July and beginning of August last year show that the board was informed of upcoming investment decisions but the transactions that were actually made differed from those that had been approved. Additionally, meeting minutes show that TEADY manager Panayiota Karadima informed the board that the transactions were successfully completed at a profit, even though they left the pension fund in the red. Sources said the only person who could have known the truth about the transaction was Simeoforidis. The issue has raised questions over the quality of pension fund investments in Greece. In reaction to the news, the government has forbidden state funds from taking positions on risky bond derivative products and has ordered further investigation into their investments from 1998.
