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German Firm Paid Greek Defense Bribes

Kantas_TsoxThe representative of a German company doing defense contract deals with Greece has reportedly admitted that the company paid bribes to officials – some of whom are now being probed – but dismissed it, saying it took place “many years ago.”
The official, who was not named, worked for Rheinmetall, which, along with another German firm, Atlas Elektronik, has come under the spotlight in a growing investigation into a spreading scandal in the Greek Defense Ministry.
A former minister, Akis Tsochatzopoulos, is already serving a 20-year-sentence after being convicted of corruption and money-laundering for bribery in contract deals while serving there and his successor, Yiannos Papantoniou, has been charged – along with his wife – of failing to declare the source of his wealth.
The head of procurement under Tsochatzopoulos, Yiannis Sbokos, is also in jail after being convicted of money laundering. Another former defense minister, current Deputy Premier/Foreign Minister Evangelos Venizelos, the head of the PASOK Socialists, has escaped being probed for his handling of a flawed submarine contract that wasn’t delivered.
The damning evidence has been given to magistrates Gavriil Mallis and Yiannis Stavropoulos by another former defense procurement officer, Antonis Kantas, who the newspaper Kathimerini, without naming the sources, said had revealed to them details of a widespread corruption network in the ministry.
That led the officials to summon an unnamed 83-year-old man who worked as a representative of arms firms to give evidence in connection to claims of bribery and that he would be charged for that and laundering money to hide the trail of the cash. He is said to be willing to testify.
Kantas, deputy head of procurements at the ministry between 1996 and 2002, told the judges how he managed to stash away some 16 million euros ($22 million) in bribes. He identified the deals for which he received under-the-table payments and named the local representative of Rheinmetall and Atlas Elektronik as one of the men that bribed him.
Responding to a question from Kathimerini and German newspaper Sueddeutsche Zeitung, Rheinmettal acknowledged bribes had been paid to Greek officials but said this took place “many years ago.”
He closed closed his office at the end of August and left for Germany, where he reportedly informed a prosecutor in the city of Bremen that the company had given kickbacks to Greek officials to secure defense contracts.
Kantas explained how under-the-table payments were made to secure the purchase of German-made Leopard tanks and Type 214 submarines.
He also gave background to the deals to buy the German and Swedish-made ASRAD vehicle-mounted short-range air defense system, as well as the Russian-made Kornet missiles and launchers. He said he earned around 16 million dollars from these and other deals, which he deposited in foreign bank accounts.

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