Prosecutor investigates “violations of capital controls” by citizens & politicians

Greece is full of many little “cunning Odysseus” who manage everything once they have the right connections, are in the right position at the right time. Allegedly, they can even violate the capital controls and send money abroad or withdraw large sums from the banks despite bank holidays and other trifles of laws and restrictions that apply only to the majority of ‘honest idiots’ living in this Greek country.

It was less than a week after imposition of capital controls on June 29th 2015, when local website Candia News reported that a politician from Herakleio, Crete had withdrawn one million euro from his account and had it transferred to a bank in France.

According to Candia News report on July 3rd, the local politician asked his bank in Herakleion to transfer €1,000,000 to a bank in France on the grounds of “doing businesses abroad”, the bank rejected the request on the grounds that “banks were on holiday”, the politician contacted officials at the Bank of Greece and the impossible became possible: the money found its way from Crete to France.

Candia News did not mention the name of the “politician from an opposition party” but the case soon took the way to justice: the journalist and website administrator submitted all available documents to prosecutor, the politician who allegedly “recognized himself” in Candia News report, filed a lawsuit against the journalist.

End of July, Alternate Finance Minister Dimitris Mardas told the Greek Parliament, that ‘the banking supervision mechanisms are investigating violations of capital controls.” Mardas admitted that “there have been violations and infringement attempts by several businessmen who tried to withdraw amounts higher than the €60 per day.”

On July 16th, news website in.gr revealed that “two Greek banks fired a total of 20 bank employees after internal audits found out that these employees withdrew money from deposits over the weekend 27.- 28. June, while they were aware of the upcoming imposition of bank holiday and capital controls.”

Immediately after the imposition of the “short-term bank holiday” targeted internal controls conducted in four systemic banks  showed that employees proceeded to unusual withdrawal of money, despite the preparations for capital controls on June 26th, 27th and 28th. 

By Friday, July 5th, auditors had gathered a sample of about 500 bank employees. Cross checks showed that 20 of them had made withdrawals “beyond the ordinary”. These people have apologized and were later dismissed.

The withdrawals were within the range of the daily before-the-capital-controls limit, so between €1,000 and €2,000 and that no large amount were withdrawn. (in.gr/To Vima via dikaiologitika.gr)

Mardas’ statements in the Parliament was apparently the icing on the top of media reports on ‘capital controls violations’ and called in the Justice with Chief Prosecutor of Appeals now personally conducting preliminary investigation on the issue, assisted by other authorities like the Corruption Prosecutor, Economic Crimes prosecutors, financial police and Financial Crimes Units (SDOE).  Not even “politicians” will be exempted from the investigation, Greek media report.

According to the media, the offenses could be “tax evasion” and “money laundering”. KTG assumes they could be also “breach of duty”…

I suppose the investigation will include bankers and bank personnel, from the bottom to the top. And then, justice authorities will take their magnifying glass and take a closer look at all those politicians who directly or indirectly were initiating bank runs by claiming at television panels, radio talk shows, newspapers and websites statements that “the banks will close”, “the economy will collapse” and all these nice scare-mongering statements.

We know their names and their statements are still on internet – since 2012.