Twist in fund probe
British financial authorities are investigating alleged links that a UK-based firm had to the sale of an overpriced bond to a Greek civil servants’ pension fund, sources told Kathimerini yesterday, as it was revealed that officials had voiced concerns two years ago about the investments made by pension funds. The Financial Services Authority (FSA), an independent body which regulates financial services in Britain, is believed to be looking into the role of North Asset Management. The London-based asset management firm was allegedly part of the chain of companies that sold on the 280-million-euro bond that was eventually bought by the Civil Servants’ Auxiliary Pension Fund (TEADY). The FSA refused to comment on the assertion that it is involved in the investigation, which Greek authorities began earlier this month. New evidence that emerged yesterday suggested that Greek officials are also trying to establish the trail of money between the firms involved in the trading of the bond, for which TEADY paid some 5 million euros too much. Investigators are concentrating their efforts on establishing how 4.2 million euros was allegedly deposited into the bank account of Hitech SNT, an Athens-based technology firm. It is believed that the trail began with the Cayman Islands-based North Principal Investment, which is then alleged to have transferred the money to the financial services firm Morgan Stanley in London. The money was then sent to a Piraeus Bank account of a Greek firm called Forest Dove, which then issued a 4.2-million-euro check that was handed to Hitech SNT before ending up with the Acropolis stock brokerage house that sold the bond to TEADY. It is expected that prosecutors will ask for access to the bank accounts of all those allegedly involved in the sale of the bond. Meanwhile, it was revealed yesterday that a Labor Ministry committee had underlined in September 2005 the lack of information provided by pension funds to the ministry about their investments. The committee also recommended the setting up of an advisory panel that the boards of pension funds could consult before investing their money.
