So
Many Bribes, a Greek Official Can't
Recall Them All |
Publication |
New York Times |
Date | 2014-02-07 |
Reporter |
Suzanne Daley |
Web Link |
The Greek Defense Ministry paid
more than $4 billion for
submarines that sit virtually
abandoned in a shipyard outside
Athens. Angelos Tzortzinis for The
New York Times
ATHENS - When Antonis Kantas, a
deputy in the Defense Ministry
here, spoke up against the
purchase of expensive German-made
tanks in 2001, a representative of
the tank's manufacturer
stopped by his office to leave a
satchel on his sofa. It contained
600,000 euros, about $814,000.
Other arms manufacturers eager to
make deals came by, too, some
guiding him through the ins and
outs of international banking and
then paying him off with deposits
to his overseas accounts.
At the time, Mr. Kantas, a wiry
former military officer, did not
actually have the authority to
decide much of anything on his
own. But corruption was so rampant
inside the Greek equivalent of the
Pentagon that even a man of his
relatively modest rank, he
testified recently, was able to
amass nearly $19 million in just
five years on the job.
Greeks are hardened to stories of
corruption. But even they have
been transfixed by Mr. Kantas's
confessions since he was arrested
recently on a litany of charges
including money laundering and
behavior that was detrimental to
the Greek state. Never before has
an official opened such a wide
window on the eye-popping system
of payoffs at work inside a Greek
government ministry. At various
points, Mr. Kantas, who returned
to testify again last week, told
prosecutors he had taken so many
bribes he could not possibly
remember the details.
Mr. Kantas's admissions,
prompted by his hope that if he
tells all he will be eligible for
leniency under a new law, has left
many Greeks hoping that they are
finally witnessing the beginning
of the end of the unchecked graft
that helped plunge Greece into its
current crisis. In the past, few
officials have been convicted of
corruption related charges and
those who were went to jail
without saying a word. There was
no benefit in doing otherwise.
But as details of his back-room
deals emerge, Mr. Kantas is also
fueling a broader outrage here,
particularly toward Germany, which
has berated Greece for the
financial mess it finds itself in.
Mr. Kantas's testimony, if
accurate, illustrates how arms
makers from Germany, France,
Sweden and Russia passed out
bribes liberally, often through
Greek representatives, to sell the
government weaponry that it could
ill afford and that experts say
was in many cases overpriced and
subpar.
The 600,000, for instance,
bought Mr. Kantasβs silence
on thhe tanks, which were deemed
of little value in any wars Greece
might fight, according to
Constantinos P. Fraggos, an expert
on the Greek military who has
written several books on the
subject. Greece went ahead and
bought 170 of the tanks for about
$2.3 billion.
Adding to the absurdity of the
purchase (almost all of it on
credit), the ministry bought
virtually no ammunition for them,
Mr. Fraggos said. It also bought
fighter planes without electronic
guidance systems and paid more
than $4 billion for troubled,
noisy submarines that are not yet
finished and sit today virtually
abandoned in a shipyard outside
Athens. At the height of the
crisis, when it was unclear
whether Greece would be thrown out
of the euro zone and long before
the submarines were finished, the
Greek Parliament approved a final
$407 million payment for the
German submarines.
First, you have to blame
the rotten Greek system,
Mr. Fraggos said. But the
sellers bear a very big part. They
were bribing officials and lending
money to an almost bankrupt
country so they could sell their
products.
The Defense Ministry is hardly the
only ministry suspected of being a
hotbed of corruption. But the
Defense Ministry makes a
particularly rich target for
investigators because Greece went
on a huge spending spree after
1996 when it got into a low-level
skirmish with Turkey over the Imia
islets in the Aegean Sea.
One former director general of the
Defense Ministry, Evangelos
Vasilakos, calculated that Greece
spent as much as $68 billion on
weaponry over the next 10 years,
much of it borrowed money. To win
these deals, which involved the
approval of military and Defense
Ministry officials, as well as
Parliament, arms dealers probably
spent more than $2.7 billion on
bribes, according to Tasos
Telloglou, an investigative
reporter for the Greek daily
newspaper Kathimerini, who has
written extensively on the
subject.
Mr. Kantas, he said, could not
make deals, but had the power to
disrupt deals because he was
considered knowledgeable about
weaponry. He was basically
a toll station, Mr.
Telloglou said.
Mr. Fraggos and other experts
worry that the prosecution team
behind Mr. Kantas's arrests
is being starved of the resources
it needs to deal with an
ever-widening pool of information.
The four prosecutors work in a
windowless converted storage room
with their desks jammed together.
The unit's chief, Eleni
Raikou, appointed last August,
paid for the installation of new
wall outlets and light switches
herself.
But the team appears undeterred.
In the wake of Mr. Kantas's
first testimony in December, they
have made several more arrests,
including the representatives of
several German arms manufacturers
and a subcontractor in the German
submarine deal, who recently
provided prosecutors with details
of the bank accounts he used to
transfer about $95 million worth
of payments.
In an odd twist, Mr. Kantas, 72,
was apparently tripped up by his
own banker, according to his
lawyer, Yannis Mantzouranis. Like
many other Greeks, Mr.
Mantzouranis said, Mr. Kantas
would bring bundles of cash to his
banker, who would fly to
Switzerland to make the deposits
when enough cash had accumulated
to make the trip worthwhile.
At one point, however, Mr. Kantas's
banker lent 500,000, about
$6680,000, of Mr. Kantas's
cash to representatives of the
German telecommunications giant
Siemens. Then, the banker allowed
Siemens, which is under
investigation for bribing
officials over various contracts
in Greece, to wire a deposit
directly into Mr. Kantas's
Swiss account with Dresdner Bank.
Investigators looking into Siemens
found Mr. Kantas's name on
a list of people the company had
sent money to, his lawyer said.
Mr. Kantas was forced to explain
where the 500,000 in his
accouunt came from. At first, he
told investigators it was from the
sale of some paintings. But they
raided the home of the supposed
buyer and found evidence that the
paintings had been in his
possession since the 1980s.
In his various depositions since
his arrest, Mr. Kantas, who was a
deputy in the Defense Ministry's
procurement department, has
described a tangle of bank
accounts and offshore companies
used to store his bribes, one
named Kourkoumpini, after a Greek
sweet. When the so-called Lagarde
list Β a roster of Greeks with
Swiss bank accounts Β became
news, Mr. Kantas quickly moved
most of his money to Singapore.
At one point, he said, even he was
astounded at the money offered.
One dealer promised him 3
million dollars or euros,
to support the purchase of
antitank missiles, a figure he
could not believe. But the dealer
came through, putting some of it
into his Swiss accounts and giving
him 700,0000 in cash, which he
hid in the basement till he could
get to the bank.
Prosecutors say the 2010 leniency
laws Mr. Kantas hopes to take
advantage of are giving them new
leverage. But, they said, a plea
bargaining system would be even
better.
In all, Mr. Kantas admitted to
taking bribes over 12 contracts,
six with German companies, and two
each with French, Swedish and
Russian arms dealers. Some
companies Mr. Kantas named have
been convicted in other cases of
bribery in the past. But others
maintain that they have done
nothing wrong. The makers of the
tanks Greece bought, Krauss-Maffei
Wegmann, say they are looking into
the matter.
When investigators tallied up all
the bribes Mr. Kantas admitted
taking, they found he had still
not accounted for all the money in
his accounts.
Asked about this, Mr. Kantas said
he had 2 million in bribes from
his time in tthe military. On top
of that, he told investigators, he
invested well. βI will prove
it to you when the statements from
the banks come, he said.
Mr. Mantzouranis says that his
client, who is in jail awaiting
trial, has met the criteria for
leniency.
Law enforcement officials believe
Mr. Kantas knows more and may have
more money stashed away. He
gave us nothing that we did not
know, one investigator sa.idHe has to tell us
about the rest.
Nikolas Leontopoulos contributed
reporting.
With acknowledgement to
Suzanne
Daley and New York Times
A
loota continua.
Thyssen, Ferrostaal, Siemens,
DASA, Thomson-CSF, Thales, British
Aerospace, BAE Systems, Agusta,
Saab, inter alia, have been doing
this for 45 years - ever since
they refilled their domestic
troughs after refilling their
countries' arsenals after World
War II.
It used to be a matter of being
beware of Greeks bearing gifts
Now it is far more likely to be
one of Germans and French bearing
gifts for Greeks, Saudi and South
Africans, inter alia.
The loota continua.