ND points to PASOK bond scandal

The government has accused PASOK of hypocrisy during the recent bond scandal, producing documents which suggest that the Socialists’ general manager, Yiannis Papaconstantinou, had approved purchases of overpriced bonds when he was head of the Greek National Road Fund (TEO). Prime Minister Costas Karamanlis produced the documents during a parliamentary debate late on Monday. He claimed they proved that Papaconstantinou approved deals worth 700 million euros with Artion stock brokerage that caused losses to the fund, which manages money for the construction of highways. PASOK fiercely criticized the government’s stance in the recent bond scandal, which involved the purchase by four pension funds of an overpriced note. Papaconstantinou issued a statement yesterday saying that the government had been aware of the deal for some time and that they were profitable for TEO. He said he would take legal action against his accusers. The General Accounting Office is also investigating claims that while Papaconstantinou was the head of the Organization for Vocational Education and Training (OEEK) between 1999 and 2000, his wife was appointed to teach 10 different courses at two state-funded vocational colleges even though she had no qualifications as a teacher. PASOK leader George Papandreou, addressing his MPs yesterday, did not indicate whether he would take any action against the party’s general manager. «We expect more personal attacks,» Papandreou told PASOK’s parliamentary group.

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