Charges are due in probe into bond
A prosecutor’s investigation into a recent scandal involving the purchase by pension funds of an overpriced government bond is likely to be concluded today with some 40 people expected to face charges, according to sources. The investigation was launched to determine who was responsible for the financial losses incurred by the pension funds. A decision is expected on Thursday as to whether an appeals prosecutor will be called in to investigate the case further. Meanwhile, Bank of Greece Governor Nicholas Garganas said yesterday that the central bank has no legal obligation to evaluate pension fund investments. «Pension fund boards knew very well what they were doing,» Garganas said. «There are certain people, mainly in the funds, who wish to shirk their responsibilities and send the message that the central bank is obliged to carry out checks. This is not correct,» he stressed. Senior government officials have indicated that the Bank of Greece has been partly responsible for the bond scandal by failing to properly monitor pension fund investments. Garganas explained that the central bank’s only legal obligation is to maintain fund accounts and execute bond transactions, as instructed. According to sources, a senior official at the Bank of Greece is expected to be charged over the bond scandal.
