Criminal Charges Over Germanos' Case

Sources: ΝΕΤ-ΝΕΤ 105,8-ΑNA/ΜNA 

A preliminary investigation had been held into the case after Socialist MPs had called the buyout as non-profitable, since it cost OTE 1.3 billion euros. The Socialist party (PASOK) said it was proved right, while the Communists defended the state character of telecommunications in Greece, stressing that merely attributing responsibility would not do. "These developments have left the Government exposed," underlined SYN (Coalition of the Radical Left). The charges came as a result of an investigation carried out by Appeal Prosecutor Efstathia Spyropoulou. Upon concluding her probe and after interrogating all people implicated, Spyropoulou ordered the First Instance Prosecutor’s Office to press charges for five felonies.

The charges relate to abuse of trust, against the businessman for moral instigation, the members of the company’s board for legalizing profits coming from illegal activity and against members involved in the case for manipulating the company’s share holders.

Political Reactions
The deal in question was signed between Cosmote and Germanos company in 9 May 2006. It originally cost 1.58 billion euros, but the sum brought down to 1.3 billion euros after it was sold to Panos Germanos and the Germanos stores in Poland, Ukraine and Cyprus, countries where Cosmote has no activities in. Cosmote paid 19 euros per share for the buyout of 42% of the company. It bought the rest 58% through a takeover bid. The deal enabled Cosmote to have full control of the 337 Germanos stores across Greece. After the deal was signed, Tim and Vodafone mobile operators, which had strong contracts with Germanos, stopped their cooperation with the company.

Commenting on the legal actions taken against the OTE chief, Panagis Vourloumis, Finance Ministry circles noted that the prosecution is against all persons responsible and not against Vourloumis, whose name was mentioned in the report because he is the OTE head. Asked on the matter, Deputy Government spokesman Evangelos Antonaros said he could not take a stand, since he was not aware of the case. Following the charges pressed by the First Instance Court Prosecutor, PASOK feels vindicated, stressed PASOK spokesman Papakonstantinou, noting that the prosecution resulted from the lawsuit filed by 17 PASOK MPs in February 2007.

PASOK wonders, continued Papakonstantinou, whether the relevant Ministries will shoulder their responsibilities and what the Government will do about the fact that the OTE board is exactly the same with the one that sold the Organisation to Deutsche Telekom. The PASOK spokesman said that he expects Alogoskoufis to take a stand, noting that although he has political responsibilities, the possibility of penal responsibilities should be investigated as well.

According to information, during the sitting of PASOK’s Political Council, Socialist leader George Papandreou voiced his satisfaction over the outcome of the judicial investigation. He further underlined that while the Government’s battle against corruption goes on vacation, PASOK will keep fighting for transparency till the end. "This is an obvious case for which we had lodged a lawsuit. I hope this time Justice will clear it because losses for OTE company and the social group are very big. However, this development poses more serious questions about OTE’s buyout by Deutsche Telekom", PASOK cadre Vaso Papandreou stressed on reference to the case.

KKE in its announcement says: "KKE is the only political party that supports and will always support the existence of a state company of telecommunications with no other private companies getting involved. However, attributing only criminal responsibilities is not enough." "These developments have left the Government exposed, since it encouraged and covered up and fully backed not only this unacceptable buyout, but also its implementation," read a SYN (Coalition of the Radical Left) announcement, underlining that what really matters, apart from reaching to the bottom of the Germanos case, is to re-examine Cosmote’s buyout by OTE and annul the agreement between OTE and Deutsche Telekom.