2004 Real Estate SA
In a heated debate in the parliamentary committee on financial affairs, it emerged that the government is planning to set up a company dealing with Athens 2004 properties in order to be able to borrow to help finance construction. The discussion, which was marked by tension, accusations and interruptions, showed up a lack of coordination in the government as various ministers seemed to have different impressions of what the legislation is about. National Economy Minister Nikos Christodoulakis, Deputy Economy Minister Christos Pachtas and Deputy Finance Minister Giorgos Floridis all provided different reasons as to why the legislation was drawn up. The debate also illustrated the great divide within factions of the ruling PASOK party. Backbencher Kimon Koulouris attacked Christodoulakis after the latter included the Olympic Stadium among the new company’s properties, overruling what his deputy ministers had said the previous day. Koulouris shouted, «You cannot govern this way and bring New Democracy into power.» He then stormed out. The opposition parties united in claiming that the legislation, which is part of the bill on corporate governance that is to be brought before the plenum next week, will create a monster company that will not be under the Parliament’s control. Only members of the ruling PASOK party approved of the bill in the committee yesterday. The opposition claims that the company, Olympic Real Estate, will take over valuable State property. According to the legislation, the company’s managing director and board will be named by the government. The company will not answer to Parliament other than provide an annual report. It will have under its control all projects that are determined to be related to the Olympics. MPs demanded a list of what these projects are, which the government provided and which included road construction and sports stadiums as well as facilities of the Piraeus Port Organization, Public Power Corporation and the police force. Also, Olympic Real Estate will be able to lease out property or allow its use without a time limit. It will be able to borrow from banks, hire employees (by a decision of the government-appointed board) at salaries up to double those of employees of other State companies, and manage funds from the public investment program for Olympic projects. The company will be allowed to be listed on the stock exchange and to sell shares.
