Issue No.
13369
The council of party leaders meets with President Karolos Papoulias on December 15
AS OPPOSITION leader, George Papandreou clamoured for Greece’s president to convene a council of party leaders to discuss ways to combat corruption, but his proposal fell on deaf ears due to Kostas Karamanlis’ refusal. As premier, Papandreou got his way when President Karolos Papoulias honoured his request, convening the council on December 15 and launching an inter-party dialogue on the issue.
In the two-hour meeting, all five party leaders appeared to find common ground, at least on the need to grapple in earnest with burgeoning corruption. In a 2009 Transparency International report on perceptions of transparency, Greece ranked 71st, dropping from the 57th slot it held the previous year.
The council of party leaders was the sixth held since 1992, when the Fyrom name dispute was discussed under then president Konstantinos Karamanlis. The last council, on the ill-fated Annan Plan for a Cyprus settlement, was chaired by former president Kostis Stefanopoulos in 2004.
In a public display of his “zero-tolerance” policy on corruption, Papandreou accepted the resignation of Deputy Interior Minister Dinos Rovlias, on the same day as the anti-corruption summit. The resignation was prompted by revelations by TV and print journalist Makis Trianta-fyllopoulos documenting that Rovlias was brokering transfers for military officers and policemen as political favours.
Rovlias’ explanation that the leaked documents never left his office and that all MPs routinely receive such requests was rejected by the PM’s office. In the past he had harshly criticised New Democracy over illegal acts of political patronage. Denouncing such practices was a main plank of Papandreou’s electoral platform.
The affair drew a sharp attack on Papandreou from ND. “The prime minister was forced to sack a member of his cabinet in order to manage public impressions, because acts of patronage were revealed, and not because they occurred. The premier in practice recognised that there is patronage and lack of political ethics. It is yet another sign of his government’s stance,” said shadow interior minister Christos Zois on December 14.
Though all party leaders at the meeting expressed determination to combat corruption, it remains to be seen if they have the political will to implement the necessary, and often politically costly, reforms needed.
Over the decades, Greek party leaders have all too often stressed the need to combat corruption, but any efforts have stopped where partisan interest begins. The difference today is that Papandreou is not afraid to burn Pasok MPs for their past sins. The same appears largely to apply to Samaras as a new party leader, who has had no government scandals of his own.
Following the meeting of party leaders, New Democracy leader Antonis Samaras appeared pleased both that Papandreou accepted a number of his proposals and that he agreed with several of the PM’s.
Samaras noted that all party leaders agreed on the need to change the law on ministerial responsibility, which provides for a much briefer statute of limitations for former cabinet members than for all other citizens. But the legal framework regarding ministerial responsibility is set by the Greek constitution, and any revision cannot occur before 2013.
Papandreou and Samaras agreed in principle that parliamentary probes could be conducted on various alleged government scandals, from the 1999-2000 stock market boom and bust (under Pasok), to the phone-tapping affair and the Siemens scandal. But Samaras said he will judge each probe based on the rationale proposed for conducting it.
There was agreement on Papandreou’s proposal that only 120 MPs be required to launch an inquiry (rather than the absolute majority of 151 required now). The danger is that a trigger-happy approach to scandal could overshadow the critical economic and social issues with which the legislature must grapple in the foreseeable future.
Leftwing Syriza leader Alexis Tsipras submitted five anti-corruption proposals, including reform of the party funding law, changes in public procurement procedures, changes in the electoral law to establish directly proportional representation and an overhaul of the institutional framework regulating the mass media.
KKE general secretary Aleka Papariga rejected the idea of allowing an audit of the Communist Party’s contributors and financial books. Papariga also proposed abolishing pensions for MPs.
Both Papariga and Tsipras stressed that the battle against corruption is distinct from, though perhaps linked to, the harsh austerity measures the government plans to deal with the deepening economic crisis.
All opposition leaders disagreed with Papandreou’s proposal to introduce a variant of the German electoral model, which critics say will turn the party leader into an absolute monarch, hand-picking candidates on party lists. Samaras rejected the PM’s argument that it would bolster transparency, as it is equally easy to influence MPs in single-seat districts.
Rightwing Laos leader Yiorgos Karatzaferis saw the meeting as an earnest discussion, noting that “the only thing certain is that it was not a theatrical performance”. “It was a discussion outside the parliamentary agenda, with the president listening in, in which all speakers were more responsible and clear than they are in parliament. There were points on which we found common ground,” he explained. Karatzaferis proposed that the president convene the council of party leaders at regular intervals.
Transparency proposals agreed to by Papandreou, Samaras
- Parliamentary committee to conduct comprehensive study and submit proposals
- Reform of party funding law, mainly public funding and all private contributions named and linked to a bank account
- Overhaul of public procurement, public works procedures to instil transparency; publishing of both planned and final cost of projects
- Launch of investigative committees to probe past scandals
- Introduction of stricter means tests for MPs and public servants, with tough penalties
- Regular checks on implementation of state budget
- Measures to combat evasion of social insurance contributions, and to incorporate migrants in the system
- Combating of tax evasion by instituting standard of living indicators, to establish taxpayer’s presumed income
- Full audit of mass media sources of funding
Corruption scandals that have tainted previous governments
Ferry contracts
April 2009
Greek lawmakers decided to launch an investigation into a former ND minister’s involvement in a shipping scandal after prosecutors passed the case to parliament. Aristotle Pavlides denied any wrongdoing in the case, brought to light by a shipowner who testified that the minister’s aide demanded bribes to grant a contract to run subsidised Aegean island ferry routes.
Vatopedi monastery
September 2008
Former merchant marine minister Yiorgos Voulgarakis resigned amid mounting criticism from within his New Democracy party over property transactions, including a land swap between the state and the wealthy Vatopedi monastery where his wife acted as a notary public. He insisted no laws were broken but the finance ministry annulled the deal and a judicial investigation showed deputy ministers were involved in the land swap which media said cost taxpayers over 100 million euros. Parliament set up an investigating committee in October. The same day, one of the prime minister’s closest aides, Minister of State Thodoros Roussopoulos, resigned over his suspected role in the land deals. In December, the parliamentary investigation failed to reach an agreement on who was responsible for the scandal and took no further steps.
Siemens
May 2008
An investigation was launched into whether German engineering group Siemens bribed companies and officials to win deals including the security contract for the 2004 Olympics. A prosecutor filed charges and an investigating judge launched an inquiry. A German court convicted former Siemens executive Reinhard Siekaczek in July for his role in setting up slush funds used to win contracts. Siemens itself gave a tally of at least 1.3 billion euros in suspect payments booked as fees. Siemens Hellas chief Michalis Christoforakos fled prosecution in Greece, skipping the country for Germany. Investigating magistrate Nikos Zogarianos, who handled the case, now faces felony charges for breach of duty.
Structured bonds
March 2007
A 280 million euro, 12-year structured government bond with a 6.25 percent coupon, issued in February 2007 by the finance ministry and underwritten by JP Morgan, passed through several brokers before ending up with state pension funds at inflated prices. The then labour minister, Savvas Tsitourides, was sacked and the deal reversed. Prosecutors announced hundreds of charges from fraud to money laundering, but did not name individuals.
ATHENS NEWS 08/03/2010, page: 4
