Ex ATEBank CEO Pantalakis Transferred €8 Million Abroad – Where’s the Problem?

Posted by in Economy

Theodoros Pantalakis, former Chairman and Governor of state Agricultural Bank, ATE, saw no wrongdoing in transferring 8 million euros abroad. He told Sunday newspaper Real News, the money he transferred abroad was the family’s savings after tax deduction. The family wanted to buy a property in London therefore the transfer, the ex CEO said. Pantalakis told media, that he had even informed the authorities about the transfer. Last Friday, governor of Bank of Greece, Giorgos Provopoulos told the Economic Affairs Committee of the Parliament that a very senior member of ATEBank  had transferred money abroad during the last months.


“Pantalakis issue” scandalizes international media

A political row has erupted in Athens after the former head of a big Greek state bank admitted to transferring 8 million euros ($9.9 million) of personal savings abroad to buy a London property months before his Agricultural Bank headed towards insolvency.

Theodoros Pantalakis, former chief executive of Greece’s Agricultural Bank (ATEbank), strongly denied any wrongdoing, telling Realnews, a Greek website, that he had declared the transaction to authorities in 2011 and had paid tax on the amount transferred, CNBC reported citing F.T.

“I’m on holiday and I don’t plan to say anything more until I come back to Athens,” Mr. Pantalakis told the FT from his villa on the Aegean island of Paros. He is expected to testify on his three years at the helm of ATEbank before a parliamentary committee at the end of August, said a person with knowledge of the dispute.

“Nobody has suggested Mr. Pantalakis sent the funds abroad illegally … But there is clearly an ethical issue since he was serving as the head of a big state bank at time of financial and economic crisis,” said a Greek banker who declined to be identified.

A government official said Greece came under pressure from the European Commission and European Central Bank [cnbc explains] to split ATEbank into a “good” and a “bad” bank and sell its healthy assets. “The alternative they gave us was to shut it down with the loss of 5,500 jobs,” the official said.

The decision was criticized by Syriza, the radical left main opposition party, as a “great robbery”.Alexis Tsipras, party leader, said he would reverse the privatization if he came to power, adding it had only benefited “bankrupt private bankers”. ATEbank employees staged rolling strikes last week in protest against the takeover.

Mr. Pantalakis will face questions from opposition lawmakers over 150 million euro in loans made by ATEbank to New Democracy and the PanHellenic Socialist Movement, Greece’s two biggest mainstream parties. These loans were insufficiently collateralized and remained unserviced while he ran the bank, analysts said. (via capital.gr)

Of course, there is no wrong doing when everything related to transfer was done by the book. But is it ethical? Many Greeks still remmeber the case of former ND-minister Giorgos Boulgarakis , who had publicly admitted that the had established an off shore company in order to avoid paying taxes. And threw to the stunned faces of Greeks the famous phrase “what is legal is ethical.” 
Pantalakis transferred the money in times of economic instability, when Greek banks were struggling for liquidity and were calling on citizens to show trust and do not withdraw their deposits…